Airbnb stock slumps after analyst cuts rating, price target citing many headwinds and not enough catalysts


Shares of Airbnb Inc. ABNB, -1.21% shed 3.7% in premarket trading Tuesday, after the home-rental company was downgraded by Gordon Haskett analyst Robert Mollins, who said he sees multiple headwinds and not enough upside catalysts. Mollins cut his rating to hold, after being at buy since July 2021, and lowered his stock price target to $172 from $216. Mollins said that while he believes Airbnb will prove the most resilient name in online travel for the foreseeable future, he expects the company’s peers will see “far greater” gross book value (GBV) growth relative to pre-pandemic levels; many catalysts are either unlikely to come to fruition, such as increasing take rates on hosts and loyalty programs; and continued market pressure on growth names with inflation likely to persist in 2022. Mollins also sees an increased risk of “material downward” revenue revision in the first quarter as most of the omicron-related headwinds didn’t emerge until the second half of December. The stock has dropped 4.8% over the past three months through Friday while the S&P 500 SPX, +0.08% has gained 3.9%.

This article was originally published by Read the original article here.

Previous articleKelley Blue Book: This little pickup truck is back on the scene and winning awards
Next articleOmicron cases peaking in Northeast, but not nationally


Please enter your comment!
Please enter your name here