Airbnb Is 'Solid': 7 Analysts Offer Takeaways On Q3 Print

Zinger Key Points
  • Airbnb’s ADR growth could remain a headwind given currency pressures and mix shift, one analyst said.
  • Increasing macro and recessionary concerns pose higher risks to 2023 numbers, another analyst stated.
Airbnb Is 'Solid': 7 Analysts Offer Takeaways On Q3 Print

Although Airbnb Inc ABNB reported upbeat third-quarter results, with revenue of $2.88 billion and earnings of $1.79 per share, analysts slashed price targets.

RBC Capital Markets

Analyst Brad Erickson maintained a Sector Perform rating, with a price target of $110.

“ABNB beat Q3 but guided Q4 in line with sell-side but likely a bit below buy-side for bookings & EBITDA,” Erickson wrote. “Positively, it continues beating on bottom-line where ADRs have held up better than feared and supply continues improving."

Mizuho Securities

Analyst James Lee reiterated a Neutral rating, while lowering the price target from $135 to $125.

“ABNB continues to demonstrate operating leverage, with EBITDA guidance on-track with expectations despite facing FX and ADR pressures,” Lee said. He added, however, that room night growth guidance for the fourth quarter was slightly short of consensus, “leading to investor concerns on FY23 macro and ADR uncertainties.”

“We view FY23 consensus room night growth to be aggressive at 20% vs. our forecast of 16%,” the analyst wrote. “We anticipate ADR growth to remain a headwind given FX and regional mix shift."

JMP Securities

Analyst Nicholas Jones reaffirmed a Market Perform rating.

Airbnb reported its third-quarter revenue and adjusted EBITDA higher than Street expectations, Jones mentioned. “GBV also beat expectations as higher-than-anticipated ADRs offset weaker-than-expected nights and experiences booked,” he added.

“We believe investors are looking for clarity around ADR trends to get more confidence in the stock at current valuation levels,” the analyst wrote. There is “increased risk to 2023 numbers as a result of increasing macro and recessionary concerns.”

Check out other analyst stock ratings.

KeyBanc Capital Markets

Analyst Justin Patterson reaffirmed an Overweight rating, while reducing the price target from $145 to $142.

Airbnb quarterly results were “solid,” but investors are concerned about the company’s ADRs and margins going into 2023E, Patterson said.

“FX and business mix are the primary factors behind 4Q guidance,” the analyst wrote. Management seems to have “significantly improved the expense base and near-flattish margins can be achieved in a softening ADR environment.”

Raymond James

Analyst Aaron Kessler maintained a Market Perform rating on the stock.

Although Airbnb reported strong results, investor expectations were “somewhat higher for 3Q based on 3P data,” Kessler said.

“We are also modesty lowering our 2023 estimates given tougher comps and ADR pressures (though note we were at high end of Street estimates),” the analyst wrote. “We remain positive on ABNB fundamentals."

Morgan Stanley

Analyst Brian Nowak reiterated an Equal-Weight rating, while reducing the price target from $105 to $110.

“ABNB reported in-line 3Q revenue and stronger-than-expected profitability driven by continued expense discipline,” Nowak wrote. “ABNB's share-gaining story is intact, but '23 demand visibility is low, while supply and platform change impacts remain debates."

Needham

Analyst Bernie McTernan reaffirmed a Buy rating, with a price target of $150.

Airbnb reported healthy quarterly results, “driving us to raise our '22E estimates, although we are taking a conservative view on the flow through leaving our adj. EBITDA estimates unchanged in '23E with better margins offsetting lower bookings,” McTernan said.

ABNB Price Action: Shares of Airbnb had declined by 8.54% to $99.74 at the time of publication Wednesday.

Posted In: Aaron KesslerBernie McTernanBrad EricksonBrian NowakJames LeeJMP SecuritiesJustin PattersonKeyBanc Capital MarketsMizuho SecuritiesMorgan StanleyNeedhamNicholas JonesRaymond JamesRBC Capital MarketsAnalyst ColorEarningsNewsPrice TargetReiterationAnalyst RatingsMoversTrading Ideas