The Airbnb (ABNB) rating was lifted to Outperform from Neutral with a new price target of $165, up from $160 per share at Wedbush on Tuesday, with the firm saying investors should take advantage of this period of relative weakness.
Airbnb shares have declined -8.5% since the company reported its first quarter 2024 earnings on May 8, underperforming both the NASDAQ and Booking Holdings (+9.3% since reporting results on May 2).
"We think investors should take advantage of this period of relative weakness and see potential upside to near-term estimates following disappointing 2Q guidance that we view as conservative given positive travel data points thus far in 2Q," said analysts at Wedbush.
In the longer term, they believe Airbnb's underlying growth opportunity remains attractive, highlighting its "significant optionality ahead" as the company expands beyond the core.
"Airbnb continues to hold a leading competitive position within the alternative accommodation segment, and we believe the opportunity for growth in adjacent products/services is becoming more tangible as management's focus shifts to new areas of growth," adds analysts at Wedbush.
Furthermore, the firm believes that in the near term, travel demand will continue to be resilient.