5 Airbnb Analysts Break Down Q3 Earnings: 'Multiple Tailwinds'

Airbnb Inc ABNB late Thursday reported strong earnings for the third quarter on the back of a rebound in travel. Here's what the Street had to say. 

BofA on Airbnb

Justin Post of BofA Securities maintained a Neutral on Airbnb and raised the price target from $185 to $194.

“The cross border travel recovery accelerated in Oct. to 80% of 2019 levels and Airbnb sees strong demand for travel extending well into ’22,” the analyst said. “We think guide suggests a more robust 4Q and we estimate 31% bookings growth vs 2019, acceleration vs 3Q.” 

Raymond James On Airbnb

Aaron Kessler of Raymond James maintained a Market Perform rating for Airbnb. He raised the revenue estimates for 2021 and 2022 by 3% to $5.9 billion and by 7% to $7.6 billion, respectively, and the EBITDA estimates by 22% to $1.54 billion and by 38% to $2.3 billion.

“While we have a positive fundamental outlook, we believe shares are fairly valued at current levels,” the analyst said. 

Needham On Airbnb

Bernie McTernan of Needham reiterated a Buy rating and raised the price target from $200 to $210.

“Following up on the May host event, when ABNB added 100 new features that drove continued supply growth, ABNB will be hosting another event in November with another round of upgrades. Also, the strength in supply is showing that ABNB's marketing initiatives in attracting hosts are paying dividends,” the analyst said. 

JMP Securities On Airbnb

Andrew Boone of JMP Securities reiterated a Market Outperform rating and raised the price target from $190 to $205.

“With new features like 'I'm Flexible; helping consumers to discover new locations and properties while better utilizing listing supply (and more features to come next week), we view Airbnb as the most innovative company within travel,” the analyst said.

“Looking ahead, given our view that margins are likely to continue to surprise to the upside and newer pockets of demand are now opening, including urban and cross border, we continue to believe Airbnb has multiple near-term and long-term tailwinds." 

Mizuho Securities On Airbnb

James Lee of Mizuho Securities maintained a Neutral rating for Airbnb and raised the target from $165 to $190.

“Although room night growth was in line at -7% vs. FY19, we continue to see strength in the US and recovery in Europe, offset by weakness in APAC,” the analyst said.

"Heading into 4Q21, we expect RNG be in line at flat vs. FY19, but heading into FY22, we expect normalized travel trends to urban and international markets to be favorable for ABNB."

ABNB Price Action: Airbnb shares were trading 11.54% higher at $199.04 midday Friday.