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CFRA stayed constructive on Airbnb (NASDAQ:ABNB) despite the ongoing pressure on consumer discretionary spending in the U.S. and abroad.
Analyst Angelo Zino and team think that ABNB can grow net bookings at an annual pace of 10% to 15% in the next 3 years as travel demand continues to improves.
“We believe recent quarterly results demonstrate the long-term profitability potential as the business scales, aided by a considerably improved cost structure.”
CFRA forecasts that ABNB’s sales will rise 14% in 2023 and 11% in 2024. The firm is encouraged by improving momentum by Airbnb (ABNB) in crossborder travel (+58% in Q3) as well as within high-density urban regions (+27%).
Overall, ABNB’s attractive margin profile, share gain, elevated host retention rate, and earnings leverage potential are enough to keep CFRA at Buy on ABNB and call it a compelling investment for investors looking for secular growth in the travel arena.
Shares of ABNB fell 1.61% in premarket trading on Monday.
Read the latest breakdowns on Airbnb from Seeking Alpha authors.
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