Airbnb is on track to becoming the ‘largest western travel platform’


Airbnb Inc (NASADQ: ABNB) at the current stock price is an opportunity to own “one of the best compounding stories” at a deep discount, says Richard Clarke – Managing Director at Bernstein.

Airbnb stock has a 35% upside

He’s convinced the vacation rental company will beat the likes of Booking and Expedia over the next two years to emerge as the most profitable online travel agency.

Clarke recommends that you buy Airbnb stock as it has upside to $143 – about 35% from here. His note reads:

Airbnb is a unique business within travel, with a triple moat from an aspirational brand, a unique product set and a loyal customer base – all focused in one of travel’s fastest swim lanes.

The Nasdaq-listed firm, he added, sits right at the heart of “vacation rental” – an industry that’s likely to grow at roughly 10% moving forward.

Airbnb stock is currently down over 40% from its year-to-date high.

Airbnb will have a record Q3

Clarke is convinced the California-based company is on track to becoming the “largest western travel platform”.

Airbnb, he forecasts, will report record results for its fiscal third quarter in November. The Bernstein analyst also rates the online marketplace for short-term homestays at “outperform” as it’s growing while trimming marketing costs.

Even if you have a negative outlook on travel demand, we would see Airbnb as the best stock to own given its more defensive position, faster growth and more attractive valuation on a four-year forward multiple.

Airbnb stock is all the more attractive considering it’s trading well below the price at which it debuted in December 2020.

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