On Wednesday, Wall Street analysts who follow Airbnb stock ( NASDAQ:ABNB ) were cautious due to an unclear outlook for demand going forward. Even though there were problems with the economy as a whole in Q3, Wall Street in general liked how the company did. They also recognized that travel demand has stayed strong. However, a hint of “choppy” earnings in the future was enough to cause some worry.
Airbnb Stock Analysis
For example, Bank of America warned clients that the name may see a drop in demand after the pandemic, even though Airbnb ( NASDAQ:ABNB ) has one of the best marketplace models because of its growth rate and brand recognition. It was decided that a Neutral rating was the most acceptable given the possibility of a recession.
Oppenheimer focused on the same problems and said that volume problems would get worse by 2023. According to the business, shares at their current levels “appears fully valued” given a valuation premium over peers in its sector, with an opportunity for multiple compression in the coming year. As a result, a Hold-equivalent rating was maintained.
Even though it still thinks the company will do well, Evercore ISI is worried about what has been happening. Equity analyst Mark Mahaney highlighted that “ABNB advised that ADRs will suffer pressure from FX and business mix (geo, urban, and listing type), beginning in Q4; this forced us to revise our ’23 ADR outlook from down 2% to down 7%.” This warning seems to be a departure from what ABNB and BKNG said during our tech conference in September.
The stock was consequently taken off of its “Tactical, Action & Positioning” Outperform List. He nevertheless kept the name with a Buy-eq...
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