IIn recent trading, shares of Airbnb Inc (ticker: ABNB) broke the 12-month average analyst target price of $ 180.43, changing hands to $ 180.81 / share. When a stock achieves the objective that an analyst has set, the analyst logically has two ways of reacting: a drop in valuation or a readjustment of its target price to a higher level. Analyst reaction may also depend on fundamental business developments that may be responsible for the rise in the share price – if things are improving for the company, it may be time to increase this target price.
There are 21 different analyst targets contributing to this average for Airbnb Inc, but the average is just that – a mathematical average. There are analysts with below average goals, including one looking for a price of $ 120.00. And then on the other side of the spectrum, an analyst has a target as high as $ 240.00. The standard deviation is $ 33,099.
But the whole reason to look at the ABNB average price target in the first place is to tap into an effort of ‘wisdom of the crowds’, bringing together the contributions of all the individual spirits who have contributed to the ultimate number, as opposed to this. that only one considers a particular expert. And so with ABNB surpassing that average target price of $ 180.43 / share, ABNB investors received a good signal to spend time evaluating the business and deciding for themselves: $ 180.43 n ‘ is that a stop on the way to an even higher goal, or has the valuation stretched to the point that it’s time to think about taking a few chips off the table? Below is a table showing current thinking from analysts covering Airbnb Inc:
| Breakdown of recent ABNB analyst ratings | ||||
|---|---|---|---|---|
| “ | Running | 1 month ago | 2 months ago | 3 months ago |
| Strong buying notes: | 9 | 8 | 6 | 0 |
| Buy reviews: | 2 | 2 | 1 | 0 |
| Keep notes: | 16 | 17 | 13 | 0 |
| Sales Ratings: | 0 | 0 | 0 | 0 |
| Strong Selling Notes: | 0 | 0 | 0 | 0 |
| Average grade: | 2.26 | 2.33 | 2.35 | 0.0 |
The average rating shown in the last row of the table above ranges from 1 to 5, where 1 is a strong buy and 5 is a strong sell. This article used data provided by Zacks Investment Research via Quandl.com. Get Zacks’ Latest Research Report on ABNB – FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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