Airbnb Inc. (ABNB) PT Lowered to $143 at UBS, 'Improved Product Localization to Drive International Volume'
UBS analyst Lloyd Walmsley lowered the price target on Airbnb Inc. (NASDAQ: ABNB) to $143.00 (from $148.00) while maintaining a Neutral rating.
The analyst comments "Airbnb reported a high-quality 4Q23 result as all of room nights, gross bookings, revenue, and adjusted EBITDA exceeded UBS and Street expectations. Investor focus will likely be on the decelerating implied room night growth guidance for 1Q24, which we believe is ~8.5% YOY, and this alongside flat-to-modestly higher ADRs results in ~8% gross bookings growth, but we believe the timing of Easter holidays and changing bookto-stay will likely drive the take rate higher to result in faster revenue growth (guidance 12-14% YOY vs updated UBSe 14%). That said, we believe the more important product update from the quarter remains Airbnb’s efforts to localize its product for various foreign markets (cited Brazil and South Korea), which should in turn drive down transactional friction in a bid to sustain room night growth at a higher level. And given what looks to us to be a more gradual roll out of its recently announced cross-currency fee, we have moderated our take rate increase forecasts. Our price target as a result decreases to $143 (vs prior $148) and we maintain our Neutral rating."