12:29 PM EDT, 09/09/2024 (MT Newswires) -- Airbnb's ( ABNB ) upcoming co-hosting service is expected to drive incremental supply for the vacation rental company's platform, while long-term stays are likely to weigh on US growth in the second half, B. Riley Securities said in a Monday client note.

The co-hosting service, which the company plans to launch in October, aims to connect property owners with people willing to manage listings. The service would bring incremental supply to the platform, according to B. Riley, which hosted the company for a group meeting with investors last week.

Airbnb's ( ABNB ) commentary during that meeting suggested it won't be looking to monetize the offering initially, but may consider doing so in the future, the brokerage said. The company doesn't see co-hosting creating a potential conflict with full-service professional property managers, but B. Riley said some property managers may see it as a threat.

Management suggested that long-term stays growth in the US faces "tough" comparisons, as the company has "anniversaried" fee reductions for stays of more than three months, B. Riley analysts Naved Khan and Ryan Powell wrote in the note. Long-term stays represent about 17% of Airbnb's ( ABNB ) global nights but are more concentrated in the US, thus resulting in a potential drag in the third quarter, according to the brokerage.

"That said, most of the (long-term stays) demand is organic, and management has noted the potential to address long-term stays from both a supply and demand perspective," Khan and Powell said.

Airbnb ( ABNB ) continues to focus its marketing efforts on core markets, such as the US and the UK, while seeking a bigger share in roughly 12 to 14 potential expansion markets, B. Riley said.

B. Riley has a neutral rating on Airbnb's ( ABNB ) stock with a price target of $140.

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