Shares Of Airbnb Are Flying — Here's What Analysts Are Saying About After Q4 Earnings

Airbnb, Inc. ABNB reported strong earnings and sales results for its fourth quarter and issued a strong Q1 sales forecast, leading a host of analysts to issue notes to investors on the earnings beat. 

By The Numbers: Airbnb reported fourth-quarter revenue of $1.9 billion, up 24% year-over-year. The company reported fourth-quarter earnings per share of 48 cents, beating consensus estimates of 25 cents.

Airbnb is guiding for first-quarter revenue to come in the range of $1.75 billion to $1.82 billion, which is above the Street estimate of $1.69 billion.

What do prominent analysts think?

The Raymond James Analyst: Aaron Kessler said in a Wednesday note to investors that while Airbnb reported solid Q4 results, the firm believes shares are fairly valued, and maintained its market perform rating.

Kessler said that Raymond James continues to express a positive outlook on the fundamental aspects of Airbnb, based on a number of factors. Including that the alternative accommodations industry is shifting towards a larger nights-and-experiences total addressable market, and that the company is projected to experience long-term revenue growth of around 15% with EBITDA margins over 35%.

Check out more analyst ratings here. 

The Credit Suisse Analyst: The investment bank maintained its neutral rating on the stock, but raised its price target from $154 to $160.

Credit Suisse highlighted that even amid macro softening and foreign exchange fluctuations, demand for Airbnb remained elevated across all regions and cross-border demand increased 49% year over year. Risks to its investment case include increased competition, and slower-than-expected consumer adoption.

The DA Davidson Analyst: Tom White maintained a Buy rating on the stock, but raised his price target from $132 to $145.

Unlike Credit Suisse, which is concerned about competition, White said that Airbnb looks set to remain ahead of competitors on the product innovation side in 2023. He points to recent efforts to streamline the listing process for first-time hosts, upgrades to its AirCover insurance offering for hosts/guests, and ongoing optimizations of how pricing is displayed.

Beyond continued momentum of ABNB's core service in its core markets, DA Davidson sees potential new growth unlocks in 2023 in the form of a broader re-opening of Asia/China travel.

The JMP Analyst: Nicholas Jones maintained a market perform rating on the stock, and did not update its price target based on macro conditions.

Jones said that while JMP was impressed by Airbnb’s strong Q4 results, Q1 outlook, and ability to maintain EBITDA and free-cash-flow margins, macro concerns remain uncertain. JMP sees additional headwinds to ADRs beyond mix-shift and new pricing and discounting tools.

The Keybanc Analyst: Justin Patterson maintained an overweight rating, but raised the price target from $142 to $144 based on resiliency in travel demand.

Patterson said that Airbnb’s guest demand remains robust as active bookers reached an all-time high, driven by continued strength in domestic travel and long-term stays. The analyst said Airbnb is a disruptive online travel company, as demonstrated by its rapid growth globally and strong brand affinity with guests and hosts. Keybanc believes these traits should generate best-in-class revenue growth and margin expansion through 2024 and beyond.

Price Action: Shares of Airbnb gained 14.32% Wednesday to trade at $138.18, according to data from Benzinga Pro.

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