Barclays Keeps Sell Rating on Airbnb with $104 Target

Barclays analyst Trevor Young maintains a Sell rating on Airbnb with a price target of $104.00, citing an average return of 1.0% and a 51.23% success rate on recommended stocks. The analyst consensus on Airbnb is a Hold with an average price target of $136.17, a -0.27% downside from current levels. ABNB market cap is currently $86.8B and has a P/E ratio of 34.36.

Airbnb, Inc. (ABNB), the leading online marketplace for unique accommodations, is set to release its Q2 2025 earnings on Tuesday, August 5. Ahead of this release, analysts have provided a mixed outlook on the company's financial health and stock performance. The consensus among analysts is a cautious "Hold" rating, with an average price target of $136.17, representing a 0.27% downside from current levels [2].

Barclays analyst Trevor Young maintains a "Sell" rating on Airbnb with a price target of $104.00, citing an average return of 1.0% and a 51.23% success rate on recommended stocks [1]. Young's concerns include Airbnb's high valuation and potential challenges in the U.S. market. Despite this, Trevor Young acknowledges the company's strong financial health and global growth prospects.

In the past 3 months, 30 analysts have provided ratings for Airbnb, with 30 "Holds," 9 "Buys," and 2 "Sells." The analysts' consensus view is that Airbnb's stock has the potential for growth, driven by its strategic expansion into experiences and services, as well as its strong cash-generating ability. However, the high valuation and challenges in the U.S. market have tempered the overall sentiment [2].

Airbnb's market capitalization stands at $86.8 billion, and its P/E ratio is 34.36, indicating a relatively high valuation compared to its peers. The company has demonstrated strong financial performance in recent quarters, with revenue increasing 6.1% year-over-year to $2.3 billion in Q1 2025. However, the company's EPS declined 41.5% year-over-year to $0.24 due to higher stock-based compensation, investment write-downs, and lower interest income [1].

Looking ahead, analysts expect Airbnb to report an adjusted EPS of $0.92 per share in Q2 2025, up 7% from the same quarter last year. For fiscal 2025, the company is expected to report an adjusted EPS of $4.18, an increase of 1.7% from fiscal 2024. Moreover, in fiscal 2026, its earnings are expected to grow 13.6% year-over-year to $4.75 per share [1].

In conclusion, while analysts have provided a mixed outlook on Airbnb's stock performance, the company's strong financial health and global growth prospects make it a promising investment in the travel services industry. However, continued focus on international expansion and cash flow management will be critical for sustaining growth.

References:
[1] https://www.barchart.com/story/news/33429033/what-you-need-to-know-ahead-of-airbnbs-earnings-release
[2] https://www.tipranks.com/stocks/abnb/forecast