Analyst John Colantuoni of Jefferies maintained a Buy rating on Airbnb (ABNB – Research Report), reducing the price target to $155.00.
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John Colantuoni has given his Buy rating due to a combination of factors that suggest Airbnb’s potential for long-term growth. The company recently announced its expansion into Experiences and Services, which marks a significant step beyond its core lodging offerings. These new initiatives are expected to broaden Airbnb’s total addressable market, enhance customer lifetime values, and serve as effective tools for customer acquisition while also supporting higher take rates.
Colantuoni believes that the introduction of Experiences and Services, initially available in numerous cities, will bolster Airbnb’s growth trajectory. The global market for experiences is substantial, and Airbnb’s share of this market is projected to double by 2030, contributing to annual growth. Although scalability remains a concern, the strategic use of celebrity promotions and local guides is likely to enhance brand recognition and maintain the quality of offerings. Additionally, the recent redesign of Airbnb’s homepage and new features for both guests and hosts are expected to drive further engagement and adoption of these new services.
Colantuoni covers the Consumer Cyclical sector, focusing on stocks such as eBay, Airbnb, and ACV Auctions. According to TipRanks, Colantuoni has an average return of 9.6% and a 63.00% success rate on recommended stocks.
In another report released today, Citi also reiterated a Buy rating on the stock with a $155.00 price target.