Bernstein Lifts ABNB Price Target to $217 as Airbnb's Growth Accelerates
Airbnb's stock price has received a boost from Bernstein SocGen Group analyst Richard Clarke, who increased his price target for ABNB to $217. This upgrade comes after the company's strong Q2 performance, which marked a 'clear inflection point' according to Clarke.
The second-quarter results showed night growth surging to 10%, with management projecting this pace for a fifth consecutive quarter. Revenue and adjusted EBITDA surpassed expectations by 0.8% and 2.7%, respectively. The third-quarter revenue forecast of $4.73 billion exceeded Wall Street projections by 2.7%.
Clarke's updated price objective reflects a 25.5 times EBITDA valuation multiple combined with expectations for 12% yearly revenue expansion. He anticipates Airbnb will deliver approximately 20% annual earnings per share growth, driven by consistent double-digit revenue increases and incremental margin improvements.