Cautious Outlook on Airbnb Amid Strategic Expansion and Macroeconomic Challenges

In a report released on May 15, Paul Chew from Phillip Securities maintained a Sell rating on Airbnb (ABNB – Research Report), with a price target of $112.00.

Paul Chew has given his Sell rating due to a combination of factors impacting Airbnb’s outlook. Despite Airbnb’s efforts to diversify its offerings through new services and experiences, the immediate financial benefits of these initiatives are uncertain. The company’s significant capital expenditure aimed at expanding beyond short-term rentals may not yield substantial revenue growth until at least FY26, making it premature to assess the success of these ventures.
Additionally, the current macroeconomic environment presents challenges, with stalled travel demand and weakened consumer sentiment, particularly in the US. These conditions may lead to cautious behavior among travelers, affecting Airbnb’s growth prospects in the near term. Consequently, Paul Chew maintains a cautious stance with a reduced target price, reflecting the potential risks and uncertainties surrounding Airbnb’s strategic expansion and the broader market conditions.

In another report released on May 14, Barclays also maintained a Sell rating on the stock with a $103.00 price target.

ABNB’s price has also changed slightly for the past six months – from $132.500 to $136.790, which is a 3.24% increase.