Airbnb stock forecast: Analysts predict 22% upside for ABNB

Airbnb stock forecast: Analysts predict 22% upside for ABNB
10 months ago
3 mins read

Airbnb (NASDAQ: ABNB) benefited from the release of pent-up vacation demand in Q2 2021, as gross booking value surpassed pre-pandemic levels as more people became vaccinated and travel restrictions were eased.

Indeed, results were better than expected; however, the tourism industry’s ongoing problems have subdued investors’ excitement.

Recently, its price has been fluctuating between $138 and $152, which is a relatively wide range and compared with its all-time high of $217 obtained two months after its IPO, this is a significant price drop.

The firm is now trading in the center of this range, where prices have been stabilizing recently, which may provide a nice entry opportunity, although some resistance may be present above.

ABNB 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

Although the short-term trend is neutral, it is still favorable over the long run. While prices have been stabilizing in the most recent time, volatility has decreased. Currently, there is a pullback taking place, which may provide a good opening.

The firm’s stock is trading barely above its 20, 50-day simple moving averages, which investors widely use as uptrend indicators; as a consequence, the short-term outlook seems optimistic based on these indicators.

As all of the EMAs are at the same level, a sharp move is imminent, and the price’s next swing may rely on the firm’s fundamentals and how major nations would react to lockdowns and Covid-19 safety measures that would directly impact the ABNB stock.

Wall Street analysts predictions

Based on Airbnb’s performance over the past three months, 22 Wall Street trading experts offered 12-month price projections for the stock. It is noteworthy that the stock’s average price target is $179.68, with a high estimate of $217 and a low estimate of $140. Compared to the BA’s current price of $146.79, the average price estimate indicates a 22.41% increase.

ABNB analysts’ price target. Source: TipRanks.com

Interestingly, fourteen TipRanks analysts have suggested to ‘Buy’ ABNB, while another eight have advised to ‘Hold’ the company based on its performance over the last three months. It is worth noting that none of the traders recommend selling. 

Therefore, most experts feel Airbnb is a solid buy, with an average price target rise of 22.41% from the current price of $146.79.

An in-depth look at the results

The quarter’s gross booking value was $13.4 billion, a 320% rise over the previous year; this is a roughly 300% gain from the company’s 2020 lows and a 10% increase over Q2 2019.  

However, it is worth noting that the Delta variant has caused a delay in reopening and post-pandemic planning. As a result, vacation-related travel bookings have slowed considerably. Asia and Europe have struggled to recover from the recent travel bans and vaccination disparities.

Therefore, Airbnb investors remain hopeful as more nations become immunized, its profits can continue to increase, providing that Covid is no longer a significant factor.

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Jordan Major

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.