On Wednesday, Truist Securities adjusted its price target for Airbnb Inc . (NASDAQ:ABNB), bringing it down to $123 from the previous $124, while keeping a Hold rating on the stock. Currently trading at $137.46, Airbnb maintains a strong financial health score according to InvestingPro data, despite 11 analysts recently revising their earnings expectations downward. The revision follows updated earnings projections for the company for the upcoming years.
The firm's analyst has updated the adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) forecast for 2024 to $3.926 billion, a slight increase from the prior estimate of $3.877 billion. With an impressive gross profit margin of 83.07%, Airbnb continues to demonstrate strong operational efficiency. However, the earnings per share (EPS) estimate for the same year has been reduced to $3.92 from the earlier projection of $4.22.
Looking ahead to 2025, Truist Securities now expects Airbnb's adjusted EBITDA to reach $4.325 billion, a minor decrease from the previously anticipated $4.358 billion. The EPS forecast for 2025 has also been adjusted downwards to $4.46 from the initial estimate of $5.08.
For 2026, the projections have been modestly revised upwards, with the adjusted EBITDA expected to be $4.961 billion, up from the former estimate of $4.889 billion. The EPS for the same year is now anticipated to be $5.24, which is lower than the previous expectation of $5.95.
The revised price target of $123 is based on a constant 20.0x multiple applied to the firm's 2026 adjusted EBITDA estimate for Airbnb. At the time of the update, Airbnb's stock was trading at multiples of 32.8x, 28.9x, and 22.8x the firm's adjusted EBITDA estimates for 2024, 2025, and 2026, respectively. This aligns with InvestingPro's analysis showing current elevated valuation metrics, including a P/E ratio of 47.5x and EV/EBITDA of 46x. For deeper insights into Airbnb's valuation and access to comprehensive financial analysis, investors can explore the detailed Pro Research Report available on InvestingPro.
In other recent news, Airbnb has had a series of noteworthy developments. DA Davidson has set a new price target for Airbnb at $131.00, reflecting a broader re-rating in the large-cap technology sector and a slight increase in the firm's financial projections for Airbnb. This adjustment comes after Airbnb's third quarter of 2024 results surpassed expectations, with revenues coming in at $3,732 million, a 10% increase year-over-year.
However, PhillipCapital downgraded Airbnb's stock from Neutral to Reduce, citing concerns about Airbnb's valuation premium. Despite the downgrade, the firm has slightly increased its revenue and adjusted profit after tax and minority interests estimates for the fiscal year 2024 by 1%.
Evercore ISI maintained its "In Line" rating for Airbnb, based on positive October data from AirDNA, a short-term rental analytics company. Susquehanna also maintained a Positive rating on Airbnb, raising its price target to $160 from the previous $130. The firm's analysis indicates a slight increase in the expected EBITDA and EPS for 2024, and a modest 1% increase in the 2025 revenue estimates. Airbnb's revenue guidance for the fourth quarter is set between $2.39 billion and $2.44 billion, representing a 7.8% to 10% increase year-over-year.
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