Mizuho Upgrades Airbnb to Buy, Raises Price Target to $200
Mizuho Securities has upgraded Airbnb Inc. (NASDAQ: ABNB) stock from Neutral to Buy and raised the price target from $150 to $200. The upgrade is based on an analysis of Airbnb’s key performance indicators, which revealed several factors that could drive the company’s future growth.
The firm identified three main drivers behind the upgrade: the potential introduction of sponsored listings, which could significantly increase EBITDA in the long term; a de-risked outlook for fiscal year 2024 room night growth, minimizing downside concerns; and the prospect of beating room night growth expectations due to additional demand from the Summer Olympics and market share gains as a result of higher hotel pricing.
Mizuho’s analysis led to an increase in their fiscal year 2027 EBITDA estimate by 15% to $6.8 billion, which is 15% above the consensus among other analysts. The firm anticipates that Airbnb’s potential for advertising monetization will contribute to this growth.
The revised price target of $200 is based on an 18.5 times multiple of the estimated EBITDA for fiscal year 2027. Mizuho’s optimism reflects a belief in Airbnb’s capacity to capitalize on its strategic initiatives and market opportunities in the coming years.
