Evercore ISI moved Airbnb Inc. (NASDAQ:ABNB) from an In Line rating to Outperform on Friday and set a new price objective of $145.00. That target implies meaningful upside from the stock's then-prevailing market price of $115.96 and aligns with third-party data cited in market reports indicating the shares appear undervalued under a Fair Value assessment.
The upgrade was prompted by what the research house described as a "Beat & Largely Raise Q4 results" showing. Evercore ISI adjusted its internal estimates upward following the quarterly disclosures, and the firm highlighted a number of product initiatives it expects will compound to bolster revenue growth into 2026 and beyond.
Product enhancements highlighted by the analyst include:
- Reserve Now Pay Later
- International market localization
- Experiences & Services
- AI-powered search
- Updated cancellation policies
Evercore ISI framed these features as "compounding product improvements" that together could accelerate top-line expansion in the coming years. The firm also pointed to valuation metrics as a factor in its decision, noting that Airbnb shares were trading at three-year trough multiples on measures including price-to-earnings, EV/EBITDA, and EV/FCF. That relative valuation backdrop was cited as part of the timing rationale for the upgrade.
The upgrade follows a period Evercore characterized as "years of deceleration and multiple de-rating" for the accommodation marketplace company. The stock's recent market performance reflects that view: year-to-date, the shares were down roughly 14.56 percent, signaling investor concern about the firm's growth trajectory and valuation prior to the upgrade.
Airbnb's latest quarterly report, covering the fourth quarter of 2025, presented a mixed picture of the company's near-term financials. The company missed consensus earnings-per-share expectations, posting $0.56 versus the $0.66 forecasted by analysts, a shortfall of about 15.15 percent. At the same time, Airbnb delivered revenue of $2.8 billion, topping estimates of $2.71 billion by roughly 2.58 percent.
These Q4 results — a revenue beat alongside an EPS miss — were a central input to Evercore ISI's updated outlook and subsequent rating change. The earnings release has drawn investor attention as market participants weigh how the company's product roadmap, margin dynamics, and monetization of new features will translate into sustained financial improvement.
Analysts and investors are expected to continue parsing the quarter and Evercore's note for implications on unit economics, regional performance, and how newer services may impact long-term revenue per booking and profitability. For now, the combination of a valuation reset and a set of product initiatives underpins Evercore ISI's more constructive view.
Note on coverage - This article summarizes the analyst action and the company's reported quarterly results without offering investment advice. Readers should consider their own research and risk tolerance.