Airbnb Has Catalysts On The Horizon, Says Bullish Analyst

Airbnb Inc (NASDAQ:ABNB) has been trying to leverage artificial intelligence (AI) to disrupt the global online travel agency (OTA) industry.

Sponsored listings offer "meaningful" upside to the company's EBITDA in the long term, according to Mizuho Securities.

The Airbnb Analyst: James Lee upgraded the rating for Airbnb from Neutral to Buy, while raising the price target from $150 to $200.

The Airbnb Thesis: The company could generate nearly 15% EBITDA upside in the long term from sponsored listings, which are "a natural extension" of its business, Lee said in the upgrade note.

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"The upside is substantial as the Street models basically flat take-rate over the next few years," while a take-rate of just 1% from advertising could lead to nearly 15% upside, he added.

Following the first-quarter guidance, Street expectations for room night growth in 2024 have been cut from 13% to 11%, which limits downside risks, the analyst stated.

"We see opportunities to beat room night growth with incremental demand from Summer Olympics and share gains from elevated hotel pricing," he further wrote.

ABNB Price Action: Shares of Airbnb had risen by 0.34% to $161.49 at the time of publication on Wednesday.

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