Airbnb is tipped by Evercore for strong earnings report
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Evercore ISIS circled Airbnb (NASDAQ:ABNB) as an online travel stock that could surprise to the upside when the company reports earnings tomorrow.
Analyst Mark Mahaney: "We view the Streetâs Q4 gross bookings and revenue estimates as ballpark reasonable, with modest downside risk given third party data (AirDNA, note) and industry data points that suggest mixed results â U.S. hotel occupancy and TSA throughput improved modestly during the quarter, while AirDNA data suggests a lighter Gross Bookings and Room Night backdrop, and U.S. and International flight search trends worsened in the second half of December."
Mahaney and team also said the Streetâs Q1 gross bookings consensus mark of +38% is somewhat reasonable given current trends and recent commentary for Expedia on improving bookings in late January and early February.
Ahead of the report, the firm kept an Outperform rating on Airbnb (ABNB) and price target of $215 ahead of the earnings report. Evercore's PT is based on a 15X EV-to-sales multiple on the 2023 revenue estimate, which is in-line with the valuation that it currently trades with.
Shares of Airbnb (ABNB) have fallen 23% from their 52-week high.
Dig further into Airbnb's upcoming earnings release.