sl-f/iStock via Getty Images
KeyBanc Capital Markets downgraded Airbnb (NASDAQ:ABNB) on Tuesday to a Sector Weight rating after having it ranked at Overweight.
The firm warned that Airbnb (ABNB) margins have peaked in the near term and that revenue growth could slow to 11% year-over-year in 2024 as growth in room nights and ADR moderates. Analyst Justin Patterson set 2024 and 2025 EBIDTA estimates at Airbnb (ABNB) well below consensus marks to reflect the expectation of more modest reserve growth.
KeyBanc sees excess in Airbnb (ABNB) stock as the stock transitions from growth to growth with a reasonably priced investor base. The online travel company is not expected to report its third-quarter results until the first week of November. Analysts have been raising their estimates on ABNB for the third quarter, with 21 of the last 23 EPS revisions for the quarter upward. Of note, Airbnb (ABNB) has surpassed EPS expectations in nine consecutive quarters.
Airbnb (ABNB) shares fell 2.62% in premarket trading Tuesday at $132.98 versus the 52-week trading range of $81.91 to $154.95.
