Airbnb Could Trounce Competition in Next 5 Years, Says Bernstein

The equity remains off 33% this year

Digital Content Manager
Oct 5, 2022 at 9:12 AM
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The shares of Airbnb (NASDAQ:ABNB) are higher this morning, after Bernstein initiated coverage with an "outperform" rating and a $143 price target. The analyst said the stock's valuation is "no longer an obstacle," and added that Airbnb could be the largest travel platform within the next five years. In response, ABNB is up 0.5% at $111.35 before the open. 

The equity's performance was choppy during the past few months, but all pullbacks since mid-July were captured by the $100 mark. Now, the security will need to overcome recent pressure at the 60-day moving average if it wants to trim its more than 33% year-to-date deficit. 

Not all analysts are so hopeful. RBC just slashed its price target to $110 from $115 earlier this morning, and of the 27 in coverage, 15 called the stock a "hold" or worse coming into today. Short sellers have also been targeting the stock, with short interest rising 10.7% in the last reporting period. 

The options pits have also been bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 1.03 sits higher than 88% of readings from the past year. This suggests options traders are picking up puts at a much quicker-than-usual clip. 


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