Airbnb, Inc. (NASDAQ:ABNB) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a pretty great week for Airbnb, Inc. (NASDAQ:ABNB) shareholders, with its shares surging 20% to US$161 in the week since its latest yearly results. Airbnb reported US$11b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.11 beat expectations, being 2.7% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Airbnb

Taking into account the latest results, the most recent consensus for Airbnb from 37 analysts is for revenues of US$12.2b in 2025. If met, it would imply a meaningful 9.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 3.3% to US$4.38. Before this earnings report, the analysts had been forecasting revenues of US$12.2b and earnings per share (EPS) of US$4.35 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 12% to US$153despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Airbnb's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Airbnb, with the most bullish analyst valuing it at US$190 and the most bearish at US$85.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Airbnb's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.8% growth on an annualised basis. This is compared to a historical growth rate of 24% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.9% annually. Factoring in the forecast slowdown in growth, it looks like Airbnb is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Airbnb going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Airbnb .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.