KeyBanc's analyst Sergio Segura highlighted three main reasons for the upgrade: the durability of Airbnb's core growth, the emergence of hotels as a secondary growth driver, and the company's potential to benefit from artificial intelligence. The bank set a price target of $191 for Airbnb shares, indicating a 19% upside from the stock's recent closing price.
Currently, Airbnb's shares are trading at 14.1 times its estimated enterprise-value-to-EBITDA for 2028, which is below its three-year median of 16.7 times. This suggests that the stock is undervalued compared to its historical performance and traditional lodging peers, despite showing stronger growth.
Additionally, KeyBanc's outlook aligns with the broader consensus on Wall Street, where 27 out of 45 analysts recommend buying or strongly buying the stock. Year-to-date, Airbnb shares have increased by 18%, indicating positive market sentiment