Airbnb stock could skyrocket: analyst

Wall Street is too bearish on the rental housing platform Airbnb (ABNB), argues Cowen analyst Kevin Kopelman.

The analyst raised his stock rating on Tuesday to outperform market performance ahead of Airbnb’s third quarter results release in a few weeks.

“What we have found is that we believe that the intensification of alternative accommodation is going to be a permanent change. You are not going to see a return of alternatives to hotels during the recovery. Instead, you are going to Seeing Airbnb and others in the space will continue to show strength in the years to come. It was really driving the upgrade today, “Kopelman said in an interview with Yahoo Finance Live .

Kopelman is looking for Airbnb shares to rise to $ 220 per share, from a previous price target of $ 160.

Airbnb stock rose 5% to $ 174.25 Tuesday. Stocks have fallen 3% in the past three months, compared to a 5% gain for the S&P 500, with traders worried about the recovery trip due to the Delta variant.

But Kopelman’s research shows booking trends remain healthy for Airbnb, much healthier in fact than others on the streets believe.

According to Kopelman, “The consensus predicts that Airbnb bookings will slow to around + 17% by next year (end of 2022), down from 30% before the pandemic and close to 100% by the end of 2021. We believe this reflects both an excess of conservatism on the recovery of COVID and a see this alternative [lodging] the increase in the accommodation offer is temporary. We see this as an unrealistic slowdown rate given (1) our opinion that the alternative has seen a permanent increase in the mix, and (2) the fact that major Airbnb geographies (EMEA, APAC, LatAm) and (urban) segments, each accounting for around 60% of ABNB’s pre-pandemic activity, were significantly depressed throughout late 2021. “

Kopelman adds that hotels should also participate in the recovery of trips. But investing in an alternative player like Airbnb is the best bet.

“We don’t think it’s the end of the world for hotels. We’re pretty optimistic about the overall recovery in travel and we also think travelers are going to hotels more. There is an increase in alternatives in the mix. . But hotels will. Also grow with it, “adds Kopelman.

Brian Sozzi is an editor and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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