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Research Alert: CFRA Keeps Buy Opinion On Shares Of Airbnb, Inc.
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Research Alert: CFRA Keeps Buy Opinion On Shares Of Airbnb, Inc.
Apr 1, 2024 1:22 PM

03:55 PM EDT, 04/01/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target to $188 from $168 on an above-peer P/E of 35x our 2025 EPS. We keep our 2024 EPS at $4.61 and 2025's at $5.36. We have a positive outlook on ABNB due to its strong network effect advantage and widespread customer adoption. We see 12% revenue growth in 2024, driven by strong supply growth (+18% ex-China in Q4), higher take rates, and international expansion. We like ABNB's positive EBITDA margins (33%, +6%-pts in Q4) and we believe persistent double-digit top-line growth can continue, driven by further penetration into markets like Asia (especially Korea), Germany, and Brazil, where adoption is early. We also expect ABNB to benefit from a resurgence in travel demand within China as Covid-19 restrictions ease, unlocking pent-up demand throughout the year. Advertising remains an opportunity as ABNB scales, while AI agents could be tapped to help improve its customer service (via lower costs). We remain optimistic about FCF potential (+$4B in 2024) and its asset-light business model.

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