In a report released today, Ronald Josey from Citi reiterated a Buy rating on Airbnb (ABNB – Research Report), with a price target of $155.00.
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Ronald Josey has given his Buy rating due to a combination of factors, primarily focusing on Airbnb’s strategic expansion beyond its core accommodations business. The introduction of Services and Experiences is seen as a significant growth opportunity, potentially increasing Airbnb’s addressable market and monetization prospects. These new offerings, which include categories such as chefs, photography, and local experiences, are expected to attract both travelers and locals, thereby enhancing the overall Airbnb experience.
Furthermore, the redesigned app and updated technology stack are anticipated to support the launch of additional services, aligning with the company’s goal of introducing new revenue-generating products annually. Despite short-term travel industry challenges, these developments are viewed as strong product tailwinds that justify the Buy rating and a target price of $155.
According to TipRanks, Josey is a top 100 analyst with an average return of 24.7% and a 61.08% success rate. Josey covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Zillow Group Class A.