Needham & Company analysts reiterated a Buy rating and $150 price target for Airbnb (NASDAQ:ABNB) shares in a note Monday, following a call with an industry expert.
The firm hosted a call with Steve Milo, founder and CEO of VTrips, a property management company operating 7 thousand properties in the U.S.
The analysts wrote: "Our three key takeaways (1) ADRs have been under pressure this year, but trends have improved in June, we think this is relatively optimistic for the core summer travel season. (2) The expert expects ADRs to contract YoY in '23E and '24E, this is more bearish than AirDNA's forecast. (3) Data is the root of the somewhat adversarial relationship between marketplaces and local property managers."
"For VTrips, trends in 2Q23 show a QoQ deterioration, primarily driven by worsening ADRs, however, trends in June improved MoM from May, providing some optimism for the summer travel season," the analysts added.
They also stated that Milo explained there were difficult comps in 1H23 as 1H22 benefited from the post-COVID travel recovery. Furthermore, they noted that the strength of the USD likely limited inbound foreign travel in 2H22, which creates easier comparisons in 2H23.