Airbnb Inc Stock Forecast
According to 28 analysts, the average target price for Airbnb Inc‘s stock over the next 12 months is $121.43, and the average analyst rating for the stock is Buy. However, Stock Target Advisor‘s analysis of the stock is Neutral, as they have identified an equal number of positive and negative signals (7 each). Currently, Airbnb Inc’s stock is priced at $120.87, which is a slight increase of 0.99% over the past week, a significant increase of 20.42% over the past month, and a decrease of 28.76% compared to its price from one year ago.
Airbnb Inc News:
Upon reviewing Airbnb’s chart, it is evident that the stock price has been on an upward trajectory for the past month, and currently stands at around $120.90. Yesterday, following the closure of the market, the company released their Q4 earnings report, which showcased a significant improvement in financial performance. As a result, it is anticipated that the stock price will continue to rise today. Analysts predict that Airbnb Inc is likely to surpass the resistance level of around $129 and may be traded within the range of $130-139.
Analysts Coverage Change:
- UBS maintains a “Neutral” rating for Airbnb Inc.(ABNB:NSD) and raises the price target to USD 130 from USD 114.
- Robert W. Baird & Co. maintains a “Neutral” rating and raises the price target to USD 125 from USD 100.
- Credit Suisse Group maintains a “Neutral” rating and raises the price target to USD 160 from USD 154.
- Barclays maintains an “Equal-Weight” rating and raises the price target to USD 128 from USD 105.
- KeyBanc Capital Markets maintains an “Overweight” rating and raises the price target to USD 144 from USD 142.
- Piper Jaffray Companies maintains a “Neutral” rating and raises the price target to USD 131 from USD 110.
- Needham & Company maintains a “Buy” rating and raises the price target to USD 155 from USD 150.
- Cowen maintains an “Outperform” rating and raises the price target to USD 145 from USD 135.
Positive Fundamentals:
Airbnb Inc has several positive attributes that make it an attractive stock for investors. One of the main reasons to consider this stock is its high market capitalization, which is one of the largest in its sector and places it among the top quartile. This size and scale make the company more stable and less risky compared to smaller competitors.
Another factor to consider is the low volatility of the stock. Over a hold period of at least 12 months, the company has demonstrated stable and consistent returns compared to its peers, placing it in the top quartile. While this stability may limit returns, it also reduces the risk of large losses.
Airbnb’s management has delivered superior returns on equity, invested capital, and assets compared to its peers in the most recent four quarters, placing it in the top quartile. This is a positive indicator of the company’s efficient use of its resources and strong leadership.
Additionally, the company has demonstrated positive cash flow and free cash flow over the most recent four quarters. This indicates that the company is generating more cash than it is spending and has the potential for future growth and expansion.
Overall, these positive attributes make Airbnb Inc an attractive stock for investors looking for stability, consistency, and strong management in a growing industry.
Negative Fundamentals:
The comments on Airbnb’s stock suggest several concerns related to the company’s performance and financial metrics. Firstly, it is delivering below median risk-adjusted returns compared to its peers. While it may have outperformed on returns, they are unpredictable. This unpredictability may make some investors cautious about investing in the company.
Secondly, the company’s dividend returns have been consistently low compared to its peers over the past five years. However, this may not be an issue for investors who are not looking for income.
Thirdly, the stock is trading at a high price-to-earnings ratio compared to its peers, and is above the sector median. It is also overpriced on a price-to-book value basis, and on a price-to-cash flow basis. These metrics suggest that the stock is currently overvalued and investors may want to be cautious before investing.
Fourthly, the company is highly leveraged, which could be a concern for some investors. However, this may be due to the company’s aggressive growth plans, and investors may want to review news and management statements to assess this further.
Lastly, the stock is also overpriced on a price-to-free cash flow basis, and is priced above the median for its sectors. Investors may want to proceed with caution before investing.
FA Score (Fundamental Analysts):
The fundamental analysis of Airbnb is “Neutral” with a FA score of 5 out of 10, where 0 is very bearish and 10 is very bullish.
