Wedbush upgrades Airbnb to Outperform on resilient travel demand

Wedbush upgraded Airbnb to Outperform from Neutral with a price target of $165, up from $160. The stock is down 8.5% since the company reported Q1 earnings on May 8 and investors should take advantage of this period of relative weakness, the analyst tells investors in a research note. The firm sees potential upside to near-term estimates following the “disappointing” guidance as it believes travel demand continues to be resilient. Longer-term, Airbnb’s underlying growth opportunity remains attractive and there is “significant optionality” ahead as the company expands beyond the core business, contends Wedbush. Airbnb continues to hold a leading competitive position within the alternative accommodation segment, and its opportunity for growth in adjacent products and services is becoming more tangible as management’s focus shifts to new areas of growth, says the firm.