ABNB Stock Ticks Higher Overnight: Analyst Sees 'Overhang’ Lifting On Airbnb’s New Growth Businesses

• Rosenblatt started Airbnb coverage with a Buy rating and $220 price target, seeing 20% upside as new businesses gain traction.
• Deutsche Bank also kept a Buy rating with a $190 target, calling Airbnb an emerging AI winner.
• DA Davidson cited 30% growth in Experiences listings and growing confidence in Airbnb’s newer businesses. 

Airbnb Inc. (ABNB) stock gained overnight after multiple Wall Street analysts made bullish calls on the company, highlighting growing momentum in Experiences, artificial intelligence and newer businesses.

Rosenblatt Sees 20% Upside, While Deutsche Bank Calls Airbnb An AI Winner 

Rosenblatt analyst Scott Devitt began covering Airbnb with a ‘Buy’ recommendation and set a $220 price target, implying a 20% upside from the stock’s last closing price. 

Devitt said investors have increasingly focused on the company’s efforts to build and expand businesses beyond its core lodging marketplace, lifting the ‘overhang’ as those initiatives start showing tangible progress. He believes Airbnb could exceed expectations and support another valuation increase.

Deutsche Bank analyst Benjamin Black also sees an important role for technology in Airbnb’s growth story. Black described the company as “emerging as a clear AI winner.” Deutsche Bank believes AI is helping Airbnb bring products to market faster while making its development process more efficient.

Deutsche Bank believes investors are not fully reflecting Airbnb’s growth potential at its current valuation and maintained a Buy rating with a $190 price target. Airbnb stock inched 0.3% higher overnight, ahead of Tuesday. 

Airbnb’s Experiences Gain Ground

DA Davidson raised its Airbnb price target to $220 from $175 while retaining a ‘Buy’ rating. The firm pointed to strong expansion in Airbnb’s Experiences inventory, which it said has grown 30% since May across the cities it monitors.

The firm added that its higher valuation reflects greater confidence in Airbnb’s long-term opportunity across Experiences, Services, Grocery and Car Rentals, as well as Hotels. 

Airbnb stock climbed 25% in August and is among the top consumer stock gainers following its fiscal second-quarter (Q2)  results. The company reported earnings of $1.37 per share, beating expectations of $1.25, as travel demand remained strong. The FIFA World Cup helped drive bookings and brought more than 150,000 new homes onto the platform. 

According to a Bloomberg report, Airbnb is testing lower host fees in the U.S., cutting its share to 6% or 10% from an average of 16% for select hosts using third-party management software, aiming to keep reservations on Airbnb rather than lose them to hosts’ own websites. 

ABNB Stock: Retail View

On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory. 

ABNB stock has gained 35% year-to-date. 

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