On Thursday, DA Davidson maintained a Neutral rating for Airbnb Inc. (NASDAQ:ABNB), keeping the price target steady at $145.00. The decision follows Airbnb's first-quarter results for 2024, which surpassed both consensus and DA Davidson's own projections in terms of room nights, revenue, and adjusted EBITDA. Despite these strong results, the forecast for the second quarter is not as optimistic, with expectations set for stable year-over-year room night growth, which is unremarkable considering the comparatively easier comparison due to last year's Easter timing.
Airbnb's second-quarter guidance suggests pressure on year-over-year EBITDA margins, attributing this to the Easter holiday's timing, a one-time payment processing benefit that positively impacted the second quarter of 2023, and increased marketing expenses. This outlook contrasts with market expectations that anticipated a marginal improvement in margins year-over-year.
The company's performance in the first quarter of 2024 indicates robust growth, yet the cautious second-quarter outlook has led to a modest downward revision of DA Davidson's full-year 2024 estimates. Despite this revision, the firm's price target for Airbnb remains unchanged at $145.00, which is based on a 21 times multiple of the company's projected 2024 enterprise value to EBITDA ratio.
Airbnb's first-quarter achievements, which exceeded expectations, have not been sufficient to shift DA Davidson's stance on the stock. The firm continues to weigh the potential challenges in the upcoming quarter, including the impact of seasonal factors and increased expenditures on the company's profitability.
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