Deutsche Bank moved Airbnb Inc. from a Hold rating to Buy and established a $154.00 price target, which the bank says implies about 27% upside from the prevailing share price of $121.19. Analysts' price targets for the stock span a broad range from $105 to $180, underscoring varied opinions about the company's outlook.
The upgrade follows a quarter in which Airbnb posted notable operational strength. The company recorded 10% growth in nights booked, surpassing Street expectations by 3.6% and marking its fastest growth of 2025 despite difficult year-over-year comparisons. Over the trailing twelve months, Airbnb's revenue rose 10.26% to $12.24 billion.
Deutsche Bank highlighted two product changes that it attributes to more than 200 basis points of incremental growth. The Reserve Now Pay Later feature helped lift bookings in North America, while a simplified fee structure for hosts reduced pricing friction. These initiatives, the bank said, supported Airbnb's robust gross profit margins, which stood at 82.96%.
Looking ahead, Deutsche Bank reported that Airbnb now anticipates at least double-digit revenue growth in 2026. That guidance is expected to be supported by product momentum originating in the second half of 2025 and by what the bank described as meaningful foreign exchange benefits projected for the first half of 2026.
The bank also expressed confidence in several elements of Airbnb's product roadmap. Those items include scaled benefits from the updated fee structure, expansion of the company's early-stage hotel business, deployment of AI-native search to lift conversion rates, and potential future revenue streams from sponsored advertising and experiences.
Airbnb's most recent quarterly earnings provided a mixed set of signals to investors. The company missed consensus earnings per share estimates, reporting $0.56 versus an expected $0.66, a shortfall of 15.15%. At the same time, revenue beat expectations, reaching $2.8 billion compared with the forecast of $2.71 billion, a surprise of 2.58%.
Several other brokerages updated ratings and targets following the quarter. DA Davidson kept a Buy rating while lowering its price target to $150, citing that key financial measures outperformed expectations. Cantor Fitzgerald cut its price target to $121 and maintained a Neutral rating, while noting better-than-expected bookings and EBITDA. Bernstein reiterated an Outperform rating with a $162 price target, pointing to solid growth in nights booked and gross bookings. Evercore ISI raised its view to Outperform and set a $145 price target after what it called strong quarterly results.
The range of analyst reactions illustrates divergent interpretations of Airbnb's trajectory: some firms are focusing on product-driven booking momentum and margin durability, while others are weighing the implications of an EPS miss and broader execution risks. The bank upgrade and accompanying commentary center on product levers and FX tailwinds as catalysts for the company's next phase of growth.
Bottom line: Deutsche Bank's upgrade to Buy and $154 target reflect confidence in recent product changes, improving nights-booked trends and margin resilience, even as quarterly results showed both upside in revenue and a shortfall in EPS. Analysts' price targets and ratings remain spread out, reflecting varied assessments of Airbnb's near-term risks and long-term opportunities.