Jefferies analysts are bullish on Airbnb (NASDAQ:ABNB), citing a potential tailwind from the upcoming Paris Olympics.
In a recent note, Jefferies highlights a significant increase in bookings for the Paris region during the Olympic games, leading them to raise their Night growth estimates for Airbnb.
Jefferies points to Airbnb's own data, indicating that "Nights booked in the Paris region for stays during the Olympics were over five times higher than last year."
This surge is accompanied by a "40% increase in active listings," suggesting strong supply to meet the anticipated demand. Jefferies expects the Olympics to provide "a ~2% tailwind to 2Q24 Nights growth," leading them to revise their Night growth estimates upwards "above consensus."
Beyond the immediate boost in bookings, Jefferies sees the Olympics as a catalyst for long-term growth. They anticipate the event will "spur incremental trial among travelers who typically stay at hotels," particularly those seeking budget-friendly options or those staying outside central Paris.
Jefferies emphasizes Airbnb's proven ability to retain new users, suggesting this "trial" will translate to "future supply/demand" growth across the region.
Looking beyond Paris, Jefferies acknowledges the potential impact of the European Football Championships in Germany, which could provide "a material tailwind" for Airbnb. While not factored into their current analysis, this event suggests further upside for the company.
Overall, Jefferies view the Olympics and other sporting events as a positive force for Airbnb. They maintain a Hold rating on the stock but acknowledge "near-term upside" and potential for long-term growth driven by increased user acquisition.