In a report released yesterday, Brian Nowak from Morgan Stanley maintained a Sell rating on Airbnb (ABNB – Research Report), with a price target of $125.00.
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Brian Nowak has given his Sell rating due to a combination of factors related to Airbnb’s recent performance and valuation. The company’s first-quarter 2025 Room Night growth was lower than anticipated, and its guidance for the second quarter suggests a further slowdown. As a result, Nowak has adjusted the 2026 forecasts for Bookings, Adjusted EBITDA, and EPS downward by 2% to 3%.
Additionally, Nowak points out that Airbnb is trading at a significant premium compared to Booking Holdings, despite both companies showing similar growth trajectories. This valuation discrepancy, coupled with the deceleration in growth metrics, has led to a reduced price target of $125 from the previous $130, reinforcing the Sell rating.
In another report released on May 9, Phillip Securities also downgraded the stock to a Sell with a $112.00 price target.