Shares of Airbnb Inc. fell. Monday after a group of analysts largely avoided investors buying the stock after it landed on Wall Street in the largest initial public offering in 2020.
Banks investment analysts largely adhere to a voluntary post-IPO “silent time” before rating a stock, and nearly 20 analysts commented on ABNB’s Airbnb,
Monday morning after that period expired. Out of 19 analysts who started broadcasting on the stock, 12 said it was a seizure, six said it was a hoax and one said it was obese, according to FactSet.
Shares in the rental lodging platform fell as much as 9% in the first session of 2021, before recouping some of their losses. They closed more than 5.2% lower Monday at $ 139.15, amid a day down for new year stocks to start.
Airbnb lost most of its business for two months just after the outbreak of the pandemic last year, causing the company to miss out on the public offering it planned to seize. But the reversal due to domestic travel and long-term stays has led the company to what is now a $ 88 billion market capitalization.
For more: Five things to know about Airbnb as it goes public
Analysts who evaluated the stock buy say the San Francisco-based company has a special offer and opportunity as travel is still affected by the pandemic coronavirus infection.
“The pandemic continues to hamper travel demand but has also highlighted the particularly flexible / agile nature of the Airbnb industry,” DA Davidson analyst Tom White wrote in a note to investors. It has a $ 172 price target for the stock.
Because of what they see as Airbnb’s different offerings, many analysts are bullish about the company’s long-term growth prospects, with DA Davidson saying Airbnb has a $ 2 trillion-plus market opportunity and a few analysts expect long-term revenue growth of 20%.
Raymond James analyst Aaron Kessler, who has an equivalent level of market performance, wrote that his “basic forward-looking outlook” is based in part on “big nights and experiences [total addressable market] that continues to shift to other accommodation. ” Kessler does not have a price target.
In addition to the pandemic, analysts cited the following investment risks: regulation, increased competition and the economy.
Regulatory concerns include short-term rent restrictions, which some cities have enforced. Airbnb has several competitors, including home rental platforms, large booking sites, travel agencies and more.
“Periods of economic weakness or uncertainty could affect global travel, reducing demand for the company’s products and services,” wrote Canaccord Genuity analysts Maria Ripps and Michael Graham, whose stock is buying. Their price target is $ 175.