12:05 PM EST, 02/14/2025 (MT Newswires) -- Airbnb's ( ABNB ) Q1 room night outlook suggests subdued growth in booking volume following "better-than-feared" Q4 results, while its investment efforts this year are considered a positive factor, RBC Capital Markets said in a note emailed Friday.

The company said late Thursday it was expecting nights and experiences booked in Q1 to be "relatively stable" from a year earlier.

Airbnb's ( ABNB ) planned investments to back growth projects didn't drive a more meaningful margin cut as investors anticipated, RBC said.

The investments, expected to be $200 million to $250 million this year, represent a margin headwind of 150 basis points to 200 basis points, but the company's margin guidance was still in line with market expectations, according to the note.

Airbnb ( ABNB ) is "on a clear path to expand its [total addressable market] beyond core stays where the strength of its brand will continue to look compelling to long-term investors and reasonably supportive of the multiple," RBC said.

RBC raised Airbnb's ( ABNB ) price target to $160 from $130 and kept its sector perform rating.

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