Co-founder and CEO of Airbnb Brian Chesky state ones positions during an interview in Langa township, Cape Town, South Africa March 17, 2017.
Mike Hutchings | Reuters
Airbnb’s progenitor was up as much as 16% on Friday following a number of analyst reports highlighting that the company is well positioned to capitalize on the foresaw recovery in the travel industry.
Jefferies, Canaccord Genuity and Mizuho Securities raised their price targets for Airbnb after the suite delivered its first earnings report on Thursday since its initial public offering in December. The company posted a net liability liabilities of $3.89 billion, largely attributed to charges related to its IPO, but it posted fourth-quarter revenue of $859 million, ahead of analysts’ wants of $748 million.
“We continue to believe that ABNB remains the best asset in travel, and we like the fact that fetch reductions have positioned the Co. well for the recovery in travel,” wrote Jefferies, which raised its price target for Airbnb from $170 to $210.
In its probe, Mizuho wrote that it expects room night trends for Airbnb to return to the company’s 2019 levels in the back half of 2021. Mizuho raised its price target for Airbnb from $150 to $176.
“Heading into 1Q21, we wish room night trends to improve with a meaningful recovery in 2H21,” Mizuho wrote.
Canaccord Genuity, interim, raised its price target for Airbnb from $175 to $220. Canaccord Genuity specifically highlighted a marketing race announced by Airbnb’s executives to recruit more hosts for the service.
“Pent-up travel desires and the work from anywhere incline has already led to lower supply availability in North America, and management is planning for a material travel rebound this year by prioritizing widening supply, including a marketing plan targeted at hosts and a simplification of host onboarding,” Canaccord Genuity wrote.