Zinger Key Points
- Airbnb added to D.A. Davidson’s Best-of-Breed Bison list.
- 2025 revenue forecast trimmed by 2.5% amid macro headwinds.
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DA Davidson analyst Tom White upgraded Airbnb, Inc. ABNB from Neutral to Buy, lowering the price forecast from $170 to $155.
The analyst writes that while leisure travel spending isn't fully shielded from economic downturns—as seen during the Global Financial Crisis—online lodging and alternative accommodation are likely to remain relatively resilient.
This is driven by the continued global shift toward digital bookings, with major OTAs like Booking and Expedia having grown gross bookings even during the Global Financial Crisis, partly aided by M&A, White adds.
Additionally, Airbnb's vast inventory of over eight million listings across 240+ regions positions it well to meet diverse budget needs.
Its recent affordability initiatives, such as upfront pricing and discounts for longer stays, helped stabilize average prices last year, even as hotel rates climbed.
White states that Airbnb's new tech product cycle can potentially bring a sizable new revenue stream to the company's asset-light model.
After a 23% pullback in the stock in the last year, it is trading at a lower multiple than the historical average and compared to some peers.
White shared that Airbnb has been added to D.A. Davidson's Best-of-Breed Bison list, which highlights top-tier companies with long-term potential.
According to the analyst, Airbnb satisfies 11 of 12 key criteria, supported by its leading market position, robust margins, healthy cash flow, and a valuation seen as undervalued relative to its long-term intrinsic value.
White trimmed 2025 revenue estimates by 2.5% due to potential macro and recessionary headwinds. Adjusted EBITDA for 2025 was also lowered by 4%.
Price Action: ABNB shares closed lower by 2.84% to $121.92 on Wednesday.
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