Cantor Fitzgerald has lowered its target price for Airbnb Inc. (NASDAQ:ABNB) to $121.00 from $141.00, while keeping a Neutral rating on the stock. The updated target sits near Airbnb's prevailing share price of $122.57, reflecting a cautious stance by the firm after the company's recent earnings release.
The brokerage's adjustment follows Airbnb's fourth-quarter performance, which outpaced some street forecasts: bookings rose about 2% above expectations and EBITDA came in roughly 3% higher. Room nights grew at an accelerated pace - up 100 basis points to 10% year-over-year - a trend Cantor highlighted as driven by robust demand in key markets. Over the trailing twelve months, Airbnb's revenue expanded by 10.18%, supported by a gross profit margin of 83.04%.
For the first quarter, Airbnb issued guidance that places both revenue and EBITDA approximately 3% above consensus at the mid-point. The company also provided a preliminary outlook for fiscal year 2026 that implies flat EBITDA margins. Cantor Fitzgerald noted that, despite maintaining its fiscal 2027 estimates following the quarter, it will remain Neutral until it sees a clearer pickup in the firm's growth trajectory.
From a valuation perspective, InvestingPro metrics referenced in the analysis show Airbnb trading with a PEG ratio of 0.56, a figure that can be interpreted as the market pricing in growth relative to earnings prospects. The company also reported more cash than debt on its balance sheet, reinforcing a strong financial position.
Cantor Fitzgerald singled out Airbnb's ongoing product work as a positive element. The firm pointed to tests of a new AI-powered search experience for select users and the broader roll-out of recent launches such as RNPL. The broker also observed progress in international expansion, the Experiences business, and hotel partnerships during the fourth quarter. Cantor expressed encouragement about the company's recent pace of product iterations but reiterated that the Neutral stance will remain until growth shows clearer improvement.
Airbnb's fourth-quarter financials presented a mixed picture. The company missed consensus on earnings per share, posting $0.56 versus an expected $0.66, a shortfall of about 15.15%. At the same time, revenue surpassed forecasts, reaching $2.8 billion against an expectation of $2.71 billion, a positive surprise of roughly 2.58%.
Several other brokerages responded to the earnings and product updates. Evercore ISI upgraded Airbnb from In Line to Outperform and set a price target of $145.00, citing the quarter as a "Beat & Largely Raise Q4 results" scenario and pointing to improved product offerings. Bernstein reiterated an Outperform rating with a $162.00 price target, emphasizing solid growth including a 10% increase in nights booked that outpaced expectations by about 3%. Bernstein characterized the performance as a "clean, solid figure-skating routine" and noted significant growth in gross bookings.
The market context around the stock has been challenging this year. InvestingPro data referenced by analysts shows Airbnb shares are down approximately 14.56% year-to-date, with technical indicators suggesting the stock may be in oversold territory. Against that backdrop, Cantor's new $121 target effectively prices the shares close to current trading levels while signaling that the firm sees limited near-term upside without clearer acceleration in growth.
In summary, the latest analyst actions reflect a balance: Airbnb's operational momentum and product innovation are visible, but mixed earnings results and a preliminary FY26 outlook indicating flat EBITDA margins keep at least some analysts on the sidelines until growth trends firm up.