Shares of Airbnb (NASDAQ:ABNB), Expedia (NASDAQ:EXPE), and Vacasa (NASDAQ:VCSA) rallied after Needham highlighted the positive performance of online travel companies in its latest supply tracker update, pointing to strong supply trends in the U.S. The report noted Expedia’s VRBO is displaying its most impressive monthly growth so far this year in June, while Vacasa registered a slight uptick, marking its first in 2023. Conversely, Evolve’s supply dropped for the first time. Analyst Bernie McTernan emphasized that the ongoing supply growth, which has seen VRBO surge by 11% year-to-date, bodes well for the long-term vitality of the marketplaces.
Airbnb is believed to be experiencing even quicker growth, with urban regions driving this upward trajectory. Following an expert call indicating an uptick in trends in June and robust TSA passenger data, Needham adjusted its estimates for Airbnb upward and raised its price target to $160. According to Needham, the revival of travel combined with Airbnb’s distinct, superior marketplace will lead to market share increases.
Overall, analysts have a Moderate Buy consensus rating on ABNB stock based on 13 Buys, 16 Holds, and three Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $126.50 per share implies 8.09% downside risk.
