Shares of Airbnb Inc.
ABNB,
gained 0.6% in afternoon trading, putting them on track for a third-straight gain, after BTIG analyst Jake Fuller turned bullish on the home-rental company, saying the recent selloff has created an “appealing entry point” for a “best-in-breed” online travel agent (OTA). The stock has now bounced 6.2% since closing Monday at a seven-month low of $131.88, which was 39% below the Feb. 11 record close at $216.84. He raised his rating to buy, after being at neutral since Airbnb went public in December. “[Airbnb’s stock] wasn’t interesting to us >$200 in February, but at 90% of traffic direct) model,” Fuller wrote in a note to clients. The FactSet consensus for 2021 revenue has increased to $5.29 billion from $4.69 billion at the end of February, and represents 57% growth from 2020. “We can’t say how a COVID resurgence might impact travel, but can say that [Airbnb] is better situated than peers to deal with it,” Fuller wrote. He noted that Airbnb’s bookings fell less that its peers and have fully recovered to 2019 levels, which others are still below pre-pandemic levels. The stock has slipped 4.6% year to date, while the S&P 500
SPX,
has gained 16.3%.
