02:50 PM EST, 11/08/2024 (MT Newswires) -- Airbnb's ( ABNB ) Q3 performance was mixed, with slight improvements in near-term fundamentals offset by a weaker margin forecast for the fourth quarter and anticipation of an investment cycle in 2025, RBC Capital Markets said in a note on Friday.

"The company's core nights growth remains solid/marginally better with several meaningfully-sized non-core opportunities arising over the next few years," the firm said.

The company's increased demand is a positive sign with monthly gains reported in the last quarter and expected to accelerate in Q4, according to the note.

RBC said that the post-Olympic demand surge in Europe and faster growth in expansion markets, aided by marketing and initiatives like the co-host program, highlight Airbnb's ( ABNB ) growth potential.

RBC said that challenges include concerns regarding margin pressures due to expansion and higher marketing costs, especially in mature markets like the US and Europe.

The firm raised its price target on Airbnb's ( ABNB ) stock to $130 from $120 and reiterated a sector perform rating.

Shares of Airbnb ( ABNB ) were down over 8% in recent trading.

Price: 135.08, Change: -12.30, Percent Change: -8.34