Investing.com -- Argus Research has upgraded Airbnb Inc (NASDAQ:ABNB) to 'Buy' from 'Hold' with a price target of $190 on robust brand presence, a network of five million hosts, and an enhanced travel experience as key drivers for growth in the short-term homestay market.
Additionally, increased active listings in the Asia-Pacific region are bolstering revenue. Argus anticipates high-teens growth in revenue and earnings over the long term, supported by new service offerings and a rise in travel within developed markets.
This upgrade follows Airbnb's strong fourth-quarter performance, where the company reported a 12% increase in revenue to $2.5 billion, surpassing expectations. The growth was fueled by a surge in international travel demand, particularly from Chinese tourists, and a 30% rise in domestic travel in Latin America.
Airbnb had also announced plans to invest up to $250 million in a new travel-related venture set to launch in May, with intentions to introduce additional businesses annually over the next five years. CEO Brian Chesky projects that each new venture could generate $1 billion in revenue within 3-5 years.
“Over the long term, we expect ABNB to post high-teens revenue and earnings growth, as the company offers new services and as travel increases in developed markets. Airbnb also generates strong cash flow, which should provide resources for share buybacks,” analyst said.
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