BTIG has reaffirmed its positive stance on Airbnb Inc. (NASDAQ: ABNB) with a "Buy" rating and a $55.00 price target.
The recommendation follows a group investor meeting held last week with Airbnb's CEO and CMO, which bolstered BTIG's confidence in the company's pipeline of checkpoint agonists for inflammation and immunology (I&I).
The meeting highlighted the potential of these treatments in the rheumatoid arthritis market, particularly in the segment following TNF inhibitors and preceding JAK inhibitors.
Airbnb's management believes that upcoming catalysts, including the results from a Phase 2b study of peresolimab in rheumatoid arthritis, could further pique investor interest. The optimism is partly based on the successful completion of a PIPE financing in the previous month, which saw significant investment from pharmaceutical giant Sanofi (NASDAQ:SNY).
The management anticipates that positive Phase 2b results, which are consistent with earlier Phase 2a findings, could validate the efficacy of PD-1 agonists in treating rheumatoid arthritis.
The timing for the release of Phase 2b data on peresolimab by Eli Lilly (NYSE:LLY), which is not rated by BTIG, is a point of speculation. Industry experts suggest the American College of Rheumatology (ACR) conference in November as a possible venue for disclosure, given the focus on 6+ month efficacy data in rheumatoid arthritis.
However, there is also a possibility that LLY may opt out of publicizing the Phase 2b results for competitive reasons and instead move directly to Phase 3 trials, which are not expected before the second half of 2025.
Airbnb's management is hopeful that an ACR50 result at 12 weeks in the low 30% range, with progressive efficacy at later timepoints, would be encouraging for the PD-1 agonist class, including Airbnb's own rosnilimab.
The company has recently updated its timeline, pulling forward the Phase 2b data release for rosnilimab to the first quarter of 2025. Additionally, Airbnb is on schedule to disclose Phase 2b data for ANB032, a BTLA agonist, in December 2024.
In other recent news, Airbnb reported an 11% year-over-year increase in total revenue in Q2, reaching $2.75 billion, and a similar rise in gross bookings value to $21.2 billion. However, its Q2 profit decreased to $555 million or 86 cents per share, from $650 million or 98 cents per share last year. Additionally, the company's Q3 revenue is projected to fall short of expectations, ranging between $3.67 billion and $3.73 billion.
TD Cowen, BMO Capital Markets, RBC Capital, and Citi have all reduced their price targets for Airbnb, but TD Cowen, Citi, and Benchmark maintain a Buy rating, indicating continued confidence in the company's viability as an investment. KeyBanc has reiterated a Sector Weight rating on Airbnb, indicating a neutral stance on the company's stock.
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