Airbnb (ABNB) delivered a stand-out performance in Q3 among online travel agency peers, UBS said in a note Friday.

While the outperformance was likely well contemplated following Booking and Expedia's print, the magnitude of the better-than-expected Q4 guide was less appreciated, the report said.

"Admittedly, Airbnb is also more-shielded from major macro pressures including the Middle East conflict and unrest in certain European cities," the note said.

The report said its pace of innovation is arriving at a faster clip, pointing to the Reserve Now, Pay Later flexible payment feature as a major contributor to growth.

The note also pointed to margin expansion in Q3, with AI reducing cost per bookings by over 17% and helping resolve many customer support issues.

UBS kept its neutral rating and raised its price target to $191 from $181 after increasing its adjusted EBITDA estimates.

Price: 191.16, Change: +21.03, Percent Change: +12.36