Airbnb is looking cheaper than usual. KeyBanc says to buy it now
Airbnb is likely to gain ground soon, and investors should scoop up the stock while its shares are looking particularly cheap, according to KeyBanc. The bank upgraded Airbnb to overweight from sector weight. Is also put a $191 price target on shares, implying 19% upside from Thursday’s close. “Our thesis rests on three key pillars: 1) core growth appears increasingly durable and product-led; 2) hotels are emerging as a credible second growth engine; and 3) Airbnb is positioned to be an AI beneficiary,” analyst Sergio Segura said Thursday in a note to clients. “With shares trading below their three-year median valuation multiple and at a discount to traditional lodging peers despite stronger growth and operating momentum, we view the current risk/reward as compelling,” he added. Airbnb last closed at 14.1 times its 2028 estimated enterprise-value-to-EBITDA ratio from KeyBanc, according to the analyst. That’s below its three-year historical next 12 months median of 16.7 times enterprise-value-to-EBITDA. The analyst added that the bed-and-breakfast company can capitalize on the AI boom to fuel its growth by leveraging its “differentiated inventory, globally recognized brand, and significant direct traffic mix.” KeyBanc’s call falls in line with consensus on Wall Street. Of the 45 analysts covering Airbnb, 27 have a buy or strong buy on the stock, while 17 have a hold rating on it, LSEG data shows. Shares have jumped 18% year to date.
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