Amanda Tan, an analyst from DBS, maintained the Hold rating on Airbnb (ABNB – Research Report). The associated price target is $150.00.
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Amanda Tan’s rating is based on a combination of factors affecting Airbnb’s current and future performance. While Airbnb maintains a strong position in the vacation rental market with a significant global presence, the company faces challenges such as a softening travel demand in the US, which may lead to tempered growth expectations. The outlook for the fourth quarter of 2024, although better than expected, suggests potential compression in EBITDA margins due to increased marketing investments aimed at expanding into non-core markets.
Amanda also notes the risks posed by macroeconomic uncertainties, which could impact discretionary spending on travel, thereby affecting Airbnb’s bookings and pricing power. Additionally, intensifying competition from both traditional and online travel service providers, as well as new entrants like Google, adds pressure to Airbnb’s market position. Despite these challenges, Airbnb’s disciplined operational model and potential for growth in new markets support the Hold rating, reflecting a balanced view of its risks and opportunities.
In another report released on February 14, Deutsche Bank also maintained a Hold rating on the stock with a $122.00 price target.
Based on the recent corporate insider activity of 170 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ABNB in relation to earlier this year.