William Blair analyst Ralph Schackart has maintained their bullish stance on ABNB stock, giving a Buy rating yesterday.
Ralph Schackart’s rating is based on several positive indicators for Airbnb. Despite macroeconomic uncertainties affecting travel lead times, Airbnb has shown resilience with stable booking behaviors and consistent growth in gross bookings value, which increased by approximately 7% year-over-year. Additionally, the company has implemented user-friendly changes, such as displaying prices inclusive of all fees, addressing a major customer complaint and potentially enhancing user satisfaction and booking transparency.
Furthermore, Airbnb’s financial health is underscored by its share repurchase program, with $807 million of shares repurchased during the quarter, and authorization to repurchase up to $2.5 billion of its class A common stock. This move reflects confidence in the company’s future performance. Revenue growth, slightly exceeding expectations, along with stable average daily rates and healthy growth in higher-end bookings, supports the Buy rating given by Ralph Schackart.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $170.00 price target.