Airbnb gets skeptical Wall Street analyst calls after stock price more than doubled from debut

The Airbnb logo is displayed on the Nasdaq digital billboard in Times Square in New York on December 10, 2020.

Kena Betancur | AFP | Getty Images

Wall Avenue analysts look plenty of development forward for Airbnb’s industry, but they don’t look noteworthy room for the stock to speed after it more than doubled in its debut final month.

More than 20 analysts initiated protection of the residence-sharing assign of dwelling to open the one year, in line with FactSet and reports sent to CNBC. Two-thirds suggest preserving the stock, and five of the 18 analysts who like mark targets request of the shares to descend.

Airbnb sold shares at $68 in its IPO final month earlier than seeing the stock surge 113% in its first day of trading on Dec. 10, to shut at $144.71. The pop valued the company at $86.5 billion, and over $100 billion in line with an absolutely diluted portion depend. The stock has been about flat within the three weeks since its IPO, earlier than falling 5.2% on Monday to $139.15.

Analysts at Morgan Stanley initiated protection with the identical of a address score and a $140 mark purpose, even though the firm views Airbnb as a pacesetter within the accommodations market. Morgan Stanley said that at about 16 times estimated earnings for 2022, merchants can await a “better entry point.”

“Whereas we’re bullish on Airbnb’s industry and industry mannequin, we look present valuation as being wonderful,” the analysts wrote.

Equally, Wedbush started protection with a address advice and a $151 mark purpose, calling the company a “dominant player in an even attempting section.” To clarify one thing increased, Airbnb would must transfer into adjacent markets or wait till “the indubitably in depth development is ready to consume up with the highest class valuation afforded the stock from day one,” Wedbush analysts wrote.

The most bearish reports were from Deutsche Monetary institution and Stifel, which both placed $130 targets on Airbnb’s stock. Stifel said its mark estimate changed into in line with a discounted cash movement diagnosis that accounted for mark of capital and development rate.

Amongst the seven take rankings to open the one year, the supreme mark purpose came from Needham, which expects the shares to hit $200 within the next 12 months. Needham analysts predict that the change accommodation market might maybe well maybe well moreover develop by five or 10 times from where it’s currently.

Airbnb is moreover at probability of procure pleasure from “pent-up toddle query” in 2021 after the coronavirus pandemic pressured so many consumers to execute their plans final one year, the firm said, including that the company’s industry mannequin is terribly appealing because it doesn’t depend on Google for traffic. Airbnb said in its prospectus that 91% of its company within the dear three quarters of 2020 came to the positioning either at as soon as or by unpaid channels.

Needham says its mark purpose is in line with a a pair of of 22 times earnings in 2022.

“Key upside drivers would be accelerating portion beneficial properties within the U.S. and Covid abating earlier than expected in ’21, in our leer,” they wrote. “Our valuable blueprint back issues are Covid becoming an incremental multi-one year headwind and/or stagnating traffic development that will maybe maybe well cause the company to speculate more aggressively in buyer acquisition, presumably by Google.”

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