‘s fourth quarter earnings seemed to impress investors and the travel company’s outlook has been well received by analysts.
The stock climbed 9% in premarket trading Wednesday.
KeyBanc analysts raised their price target on the stock to $144 from $142 following the earnings, maintaining an Overweight rating. They said one of the key takeaways from Airbnb’s earnings was that “travel demand remains resilient.”
“Guest demand remains robust as active bookers reached an all-time high, driven by continued strength in domestic travel and long-term stays,” the analysts, led by Justin Patterson, said in a note late Tuesday.
The company’s first quarter guidance assumes that the number of nights and experiences booked through Airbnb (ticker: ABNB) will grow 20% year-on-year, they added, with both city trips and cross-border vacations continuing to recover.
They increased their estimates for Airbnb’s gross booking volumes for 2023 by 3% and 2024 by 1%, “reflecting a stronger travel outlook.”
The online travel giant beat earnings estimates in the fourth quarter and topped expectations with its first quarter guidance, citing strong travel demand.
Revenue rose 24% to $1.9 billion, ahead of the Wall Street consensus of $1.86 billion, while profits of 48 cents a share were almost double estimates of 25 cents.
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