Airbnb is Bernstein’s top pick for online travel agency stock

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Bernstein turned bullish on Airbnb (NASDAQ: ABNB) with a view to becoming the largest Western travel platform within the next five years.

The company called a good entry point and started coverage on Airbnb (ABNB) with an outperformance rating.

Analyst Richard Clarke said the vacation rental industry could see high single-digit or single-digit growth going forward, with Airbnb (ABNB) in a strong position.

“Airbnb is a unique company in travel, with a triple moat of an ambitious brand, a unique product set, and a loyal customer base – all concentrated in one of the fastest swim lanes in travel.”

ABNB is considered the most profitable online travel agency in two years to beat competitors such as Expedia (EXPE) and Booking.com (BKNG).

In the near term, Bernstein predicts a record third quarter for ABNB, with overnight stays topping 100 million and beating estimates by 5%. Above all, Airbnb (ABNB) was able to grow while reducing marketing costs.

“Even if you have a negative outlook on travel demand, we would consider Airbnb the best stock to hold given its more defensive stance, faster growth and more attractive valuation on a 4-year forward multiple. .”

Bernstein assigned a price target of $143 to ABNB.

ABNB shares were flat in premarket trading Wednesday at $110.55.

Seeking Alpha Quant rating on ABNB is pending.

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