The Airbnb logo is on display on Nasdaq’s digital billboard in Times Square in New York on December 10, 2020.
Kena Betancur | AFP | Getty Images
Wall Street analysts see plenty ahead of the Airbnb industry, but see little room for the stock to run after doubling in its first round last month. .
More than 20 analysts began broadcasting on the home-sharing site to start the year, according to FactSet and reports submitted to CNBC. Two-thirds of them recommend holding the stock, and five of the 18 analysts with price targets expect the shares to fall.
Airbnb sold shares at $ 68 in its IPO last month before seeing the stock increase of 113% in the first day of trading on Dec. 10, to close at $ 144.71. The pop valued the company at $ 86.5 billion, and more than $ 100 billion based on a fully diluted share account. The stock has been about flat in the three weeks since its IPO, before falling 5.2% Monday to $ 139.15.
Analysts at Morgan Stanley started broadcasting with the same level of grip rating and $ 140 price target, even though the company sees Airbnb as a leader in the residential market. Morgan Stanley said investors can wait at around 16 times as much income for 2022, for “a better entry point.”
“While we are bullish on Airbnb’s business and business model, we see that average valuation is moderately good,” the analysts wrote.
Similarly, Wedbush began broadcasting with a grip proposal and a $ 151 price target, calling the company “a leading player in the field of attraction. “To confirm anything higher, Airbnb would have to move into nearby markets or wait for“ the huge growth to be able to catch up with the price valuation the stock received from day one, ”he wrote. Wedbush analysts.
The most bearish reports came from Deutsche Bank and Stifel, which both set $ 130 targets on Airbnb stock. Stifel said its price estimate was based on a discounted cash flow analysis that took into account the cost of capital and growth rate.
Among the seven buy ratings for the start of the year, the highest price target came from Needham, which expects the shares to hit $ 200 in the next 12 months. Needham analysts predict that the alternative accommodation market could expand five or 10 times from where it is today.
Airbnb is also likely to benefit from “pent-up travel demand” in 2021 after the coronavirus outbreak caused so many customers to cancel their plans last year, the company said, adding that the company ‘s business model is particularly attractive in that it does not rely on Google for traffic. Airbnb said in its forecast that 91% of its guests in the first three quarters of 2020 came to the site either directly or through unpaid channels.
Needham says its price target is based on a multiple of 22 hours of revenue in 2022.
“Major upside drivers would accelerate stock gains in the U.S. and Covid would decline faster than expected in ’21, in our view,” they wrote. “Our main concerns down below are that Covid is turning into a multi-year progressive growth and / or traffic growth that would require the company to invest more aggressively in building customers, perhaps through Google. “
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