The worst is likely behind Airbnb (ABNB), and after lagging peers like Expedia Group (EXPE) and Booking Holdings (BKNG) the last two years, the stock should enter a period of conservative gains thanks to its “Reserve Now, Pay Later” option and availability during the 2026 North America FIFA World Cup.
“We see diminished downside risks to shares and a few potential upside drivers to room night growth that could position Airbnb to deliver best-in-class room night growth among the scaled online travel peer set,” Barclays’ Trevor Young said in his note upgrading the stock to Equal Weight from Underweight.
Wells Fargo’s Ken Gawrelski agrees that there is limited downside left in Airbnb (ABNB), but the timing to capitalize on the opportunities for growth in the alternative accommodations marketplace is uncertain, preventing Wells Fargo from becoming more constructive on the stock.
Accordingly, Gawrelski also upgrades Airbnb (ABNB) to Equal Weight from Underweight.
Despite the more upbeat – albeit cautious — outlook for Airbnb rivals Expedia (EXPE) and Booking (BKNG) continue to expand their “alternative accommodation” offerings, nipping at the heels of the current leader in this category. Of the three, Barcalys’ Young favors Booking (BKNG).
“If one is constructive on alternative accommodations, why not buy the #2 player (Booking) that is growing faster and trades at a discount,” Young says.
Airbnb (ABNB) is still a monoline business, Young adds, and hasn’t proven its ability to scale in adjacencies, including its few iterations of its experiences initiative.
Along with an upgrade, Wells Fargo and Barclays both lift their target price for Airbnb (ABNB) by 8.5% and 12% to $128 and $120, respectively.
Shares are expected to open modestly higher on Friday with Expedia (EXPE) outperforming and poised to set another all-time high.