ABNB - Airbnb's Decelerating Growth and Elevated Risks - Analyst Sounds Alarm Downgrades Stock | Benzinga
Keybanc analyst Justin Patterson downgraded Airbnb Inc (NASDAQ: ABNB) from Overweight to Sector Weight.
The analyst highlights that the margins have reached a near-term peak, and revenue growth could decelerate as consensus works as room night (RNE) and ADR growth moderates.
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The analyst's new 2024E and 2025E EBITDA are below the Street. Patterson believes this could create an overhang on shares as ABNB transitions from a growth to a GARP investor base.
Patterson's call is that leisure travel has experienced a material recovery from 2021-2023, resulting in outsized margin expansion. The analyst sees elevated RNE and ADR growth risk as these tailwinds fade.
ADR risk is more ...