Airbnb (ABNB) is facing a greater impact from US headwinds than its competitors due to its higher exposure and lower growth rate, RBC Capital Markets said in a Friday note.
The company's business seems to lack enough diversification to offset the US headwinds, and its comparable nights growth could be marked at half of its competitor's growth rates, RBC analysts said.
The analysts said that they are not confident that new products, which are coming out with Airbnb's May 13 release, can drive the necessary earnings upside to make up for the smaller growth in nights. Revamped experiences are likely to be the focus, but they said that promoted listings remain the biggest long-term potential opportunity.
On the plus side, the company's supply growth is back to a healthier 8% level and expansion markets grew two times the core growth, with Brazil being the biggest contributor, the analysts said.
RBC maintained the company's stock rating at sector perform and reduced the price target to $140 from $160.
Price: 123.89, Change: -0.12, Percent Change: -0.10
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.