Airbnb Analyst Sees Upside From Continued Elevated Demand For Alternate Accommodations

Citi analyst Ronald Josey reiterated Buy on Airbnb, Inc ABNB with a $140 price target.
Following a call with AirDNA’s VP of Research, Jamie Lane, Josey emerged incrementally positive on near-term demand trends within the alternate accommodation market.
AirDNA reported +25% Y/Y growth in nights booked on Airbnb through November, with accelerating trends more recently and 1Q23 revenue pacing +25% Y/Y.
To be clear, given macro headwinds, Lane suggested that 2023 supply and demand growth will likely decelerate meaningfully.
However, longer-term Alternate Accommodations could reach ~20% of the lodging market, up from ~14% today, Josey said in a note titled “4Q QTD Trends Suggest Continued Elevated Demand for Alt. Accommodations.”
While Josey recognizes visibility into 2023 remains mixed given macro and overall concerns on N&EB growth, the analyst was encouraged with 4Q22 trends QTD and believed newer products like Setup, an expanded AirCover, and additional Categories could attract incremental supply and demand.
Price Action: ABNB shares traded higher by 0.6% at $88.16 on the last check Wednesday.

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