Shares of Airbnb Inc (NASDAQ:ABNB) rallied in early trading Friday after the company reported third-quarter results. Here are some key analyst takeaways:
- Benchmark analyst Daniel Kurnos reiterated a Buy rating and raised the price target from $180 to $215.
- Wedbush analyst Ygal Arounian reaffirmed an Outperform rating and lifted the price target from $200 to $237.
- Cantor Fitzgerald analyst Deepak Mathivanan maintained a Neutral rating and raised the price target from $160 to $180.
- Rosenblatt Securities analyst Scott Devitt reiterated a Buy rating, and raised the price target from $220 to $230.
Management's fourth-quarter revenue guide of $3.22-3.28 billion came in above consensus of $3.16 billion, the analyst stated.
"We think investors will now pay for share gains that management says are still widening, along with a host of other drivers, including sponsored listings, that are not currently in numbers," he further wrote.
Wedbush: Airbnb delivered strong quarterly results, with 19% year-on-year revenue growth, the fastest pace in over three years, Arounian said. Although management's fourth-quarter guidance implies a deceleration and margin pressure, it was ahead of expectations, he added.
The company's guidance beat peers, with management indicating "minimal sustained impact" from tensions in Europe and the Middle East, the analyst stated.
"AI is accelerating both product velocity and cost efficiency, and we see both contributing over time," he further wrote.
Cantor Fitzgerald: Airbnb 3Q delivered a solid quarter, with its strategic initiatives starting to drive acceleration, Mathivanan said.
The company now has "thousands of boutique and independent hotels" on its platform, with top destinations rising from 20 to 60, the analyst noted. RNPL (reserve now, pay later) is now eligible for 40% of GBV, as the company expanded the program to limited and firm cancellation policies at the beginning of the third quarter, he added.
"ABNB discussed plans to roll out holistic agentic experiences next year, building on top of the AI efforts so far this year," Mathivanan further wrote.
Rosenblatt Securities: Airbnb results were better than expected, with double-digit growth in every region, backed by a strong product roadmap, Devitt said. Even after excluding the impact from RNPL, growth in nights and seats accelerated sequentially to around 13%, he added.
Airbnb's North American growth was the fastest in four years. First-time booker growth reached its highest level since early 2022, the analyst stated.
AI improvements reduced cost per booking. The company's new initiatives are "now delivering faster growth at higher margins," he further wrote.
ABNB Price Action: Airbnb shares had risen 10.15% to $187.39 at the time of publication on Friday.