Brian Chesky, Co-Founder and CEO of Airbnb, speaks during an interview in the Langa community, Cape Town, South Africa, on March 17, 2017.
Mike Hutchings | Reuters
Airbnb stock rose as much as 16% on Friday after multiple analyst reports highlighted the company is well positioned to capitalize on the anticipated rebound in the travel industry. The stock closed 13.3% that day.
Jefferies, Canaccord Genuity and Mizuho Securities all raised their price targets for Airbnb after the company released its first earnings report since going public in December on Thursday. The company recorded a net loss of $ 3.89 billion, largely due to IPO charges. However, in the fourth quarter, the company had revenues of $ 859 million, beating analysts’ expectations of $ 748 million.
“We continue to believe that ABNB remains the best asset in travel, and we like the fact that cost reductions have positioned the company well for the travel recovery,” wrote Jefferies, who raised his Airbnb price target from $ 170 to $ 210.
In his report, Mizuho wrote that Airbnb is expected to return to 2019 levels in the second half of 2021. Mizuho raised his price target for Airbnb from $ 150 to $ 176.
“Moving into the first quarter of 21, we expect space night trends to improve with a significant rebound in 2H21,” Mizuho wrote.
Canaccord Genuity raised its price target for Airbnb from $ 175 to $ 220. Canaccord Genuity specifically highlighted a marketing campaign announced by Airbnb executives to attract more hosts to the service.
“Pent-up travel requests and work from all over the world have already resulted in lower availability of shipments in North America. Management plans a significant rebound in travel this year by prioritizing expanding the offer, including a hosting marketing plan and simplification of host onboarding, “wrote Canaccord Genuity.