Bernstein views Airbnb as ‘compelling’ with bear cases ‘discredited’

Airbnb shares are down 15% since August 1 and 10% since the Q2 results, despite a relatively in line print, raised guidance for average daily rates and margin, and “many of the bear cases largely discredited in the quarter,” Bernstein analyst Richard Clarke the analyst tells investors in a research note. The firm remains “highly positive” on the company’s long term outlook and sees current levels as a “compelling entry point.” The key bear thesis for Airbnb has been around a painful post-Covid normalization, but this is now complete, contends Bernstein. The firm says vacation rentals are back gaining share of lodging from hotels and that Airbnb has returned to being the fastest growing online travel agency. It keeps an Outperform rating on Airbnb with a $168 price target.