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Research Alert: CFRA Keeps Hold Opinion On Shares Of Airbnb, Inc.
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Research Alert: CFRA Keeps Hold Opinion On Shares Of Airbnb, Inc.
May 26, 2025 12:35 AM

02:20 PM EDT, 05/02/2025 (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 maintain our Hold rating on Airbnb ( ABNB ) but lift our price target to $139 from $124 based on 28x our 2026 EPS estimate, reflecting concerns about tariff impacts on consumer spending and travel demand. We keep our 2025 EPS forecast at $4.39 and up 2026's to $4.98 from $4.94. Q1 2025 results showed mixed performance with 8% growth in nights booked and 6% revenue growth to $2.27B, alongside declining profitability (net income down 42% to $154M). While Latin America's 27% growth in nights booked demonstrates regional strength, we remain cautious due to: 1) $200M-$250M investments in new businesses launching May 13, 2) ADR pressure (-1% in Q1), 3) moderating growth projected for Q2, and 4) ongoing FX headwinds. Despite management maintaining 2025 targets (34.5% adjusted EBITDA margin, $4.5B free cash flow) and strong cash position ($11.5B), the combination of U.S. market softness and execution risk around new initiatives warrants our conservative stance.

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