Gordon Haskett Downgrades Airbnb Inc. (ABNB) to Underperform (5), Sees 26% Downside
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(Updated - December 14, 2020 6:53 AM EST)
Gordon Haskett analyst Robert Mollins downgraded Airbnb Inc. (NASDAQ: ABNB) from Buy (1) to Underperform (5) with a $103 price target, suggesting 26% downside.
The analyst cited:
1) The valuation is more than stretched when compared to OTAs. ABNB is trading at 2.0x our 2022E GBV estimate of $46B, well ahead of the OTA peer group average of 0.6x, which is comprised of BKNG trading at 1.0x and EXPE at 0.2x.
2) An overwhelming majority of investors we’ve spoken with have been unable to justify Airbnb’s valuation premium relative to OTAs and expressed interest in realizing their quick gains.
3) Historical precedent suggests there will be a better buying opportunity in coming weeks/months.
Shares of Airbnb Inc. closed at $135.29 yesterday.
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