Analysts at Mizuho Securities said there are “catalysts on the horizon” for Airbnb (NASDAQ:ABNB), upgrading the stock from Neutral to Buy.
Their 12-month target price was also lifted from $150 to $200, implying a 25% upside potential from current levels.
ABNB shares rose 1.6% in premarket trading Wednesday.
“We expect the potential launch of sponsored listings to generate double-digit EBITDA upside long-term,” analysts at Mizuho Securities said in a note.
In addition, Mizuho also believes that the forecast for room night growth in FY24E appears to have been de-risked, minimizing concerns about downside risks. Also, they see opportunities for exceeding room night growth expectations due to “incremental demand from Summer Olympics and share gains from elevated hotel pricing.”
In turn, Mizuho has increased its FY27 EBITDA estimate for Airbnb by 15% to $6.8 billion, driven by the potential of advertising monetization, leaving them 15% above the Wall Street consensus.