Analyst Sees 'Improving' Short-Term Rental Market Ahead Of Earnings: What You Need To Know

Oppenheimer released an online travel industry update this week regarding the improving U.S. short-term-rental market. Here’s a look at what you need to know before several big names across the travel and leisure space report earnings in the coming weeks.

Expedia: Oppenheimer named Expedia Group, Inc. EXPE its top pick in the industry due to strength in hotels and data pointing to an improving vacation rental market in 2024. The analyst firm maintained Expedia with an Outperform rating and price target of $175.

Expedia is set to report its fourth-quarter financial results on Thursday after the bell. Analysts expect the company to report earnings of $1.68 per share and quarterly revenue of $2.876 billion. 

Airbnb: Oppenheimer maintained Airbnb, Inc. ABNB with a Perform rating, citing mixed investor sentiment stemming from data suggesting accelerated consumer demand for short-term rentals in the first quarter and concerns over regulation and the compression of average daily rates. 

Airbnb will release its fourth-quarter earnings report after the market close on Feb.13. Analysts are looking for fourth-quarter earnings of 64 cents per share and revenue of $2.164 billion. 

Booking Holdings: Oppenheimer maintained Booking Holdings, Inc. BKNG with an Outperform rating and raised its price target to $4,200 as it expects 2023's heavy investment cycle to result in higher operating leverage for the company. The research note also pointed to the Paris Olympics and the UEFA EURO events as potential drivers of increased European summer travel. 

Booking Holdings will report its fourth-quarter financials on Feb. 22. Consensus estimates are calling for earnings of $29.54 per share and quarterly revenue of $4.709 billion. 

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TripAdvisor: Oppenheimer maintained TripAdvisor, Inc. TRIP with a Perform rating and noted that it needs to see profit growth in the company's core segment resulting from product enhancements. Oppenheimer believes the stock is trading at an attractive valuation, but is waiting for earnings to make further adjustments.

TripAdvisor is set to report its fourth-quarter financial results on Feb. 14. Analysts expect the company to report earnings of 22 cents per share and quarterly revenue of $374.311 million. 

EXPE, ABNB, BKNG, TRIP Price Action: According to Benzinga Pro, Expedia shares closed Tuesday up 1.31% at $153.70 and Booking shares closed up 0.55% at $3,644.94. Airbnb shares closed down 0.17% at $144.53 and TripAdvisor shares closed down 0.87% at $21.54.

Image: Mohamed Hassan from Pixabay