UPDATE: Credit Suisse Lays Out Framework for Possible Upgrade, Airbnb Inc. (ABNB) PT Raised to $162

Credit Suisse analyst Stephen Ju raised the price target on Airbnb Inc. (NASDAQ: ABNB) to $162.00 (from $156.00) after the company posted strong results in its inaugural earnings report as a public company with Nights & Experiences/GBV ~24%/~20% higher than expected from strength in North America, domestic, non-urban travel, and long term stays. Management outlined a product development/marketing investment cycle designed around: simplifying the supply onboarding process, building awareness for alternative accommodations as the preferred method of travel, simplifying the Guest experience, and lowering customer contact rates through platform improvements.

The analyst reiterated a Neutral rating, laying out a framework to get more positive on the stock. He stated "Our price target increases to $162 versus prior $156 given the aforementioned near term estimates changes as well as some updates to working capital, and we maintain our Neutral rating primarily on valuation. Circumstances which could push us to take a more constructive stance on ABNB shares include the following: 1) faster than expected substitution effect from traditional hotels to alternative accommodations for the travel industry as a whole, 2) faster or meaningful share gains within the alternative accommodations category, 3) optionality from rising monetization through payments and/or advertising".

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