Airbnb (NASDAQ: ABNB) shares were downgraded to Neutral from Outperform by Baird analyst Colin Sebastien in a note to clients on Tuesday.
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Airbnb stock is down 1.46% premarket after a 2.1% decline during Monday's session. Despite the recovery in the travel sector, Airbnb shares have fallen over 42% in 2022 as macro headwinds weigh on the company.
Sebastien also cut his price target on the stock to $100 from $120, stating the company is exposed to pullbacks in discretionary “high ticket” purchases.
Although he has a positive long-term view on Airbnb shares, the analyst explained that in the short term, he is “more concerned” about risks to discretionary travel spending and the platform's average daily rates from inflationary and recessionary pressures. He also noted there could be disruptions to bookings from Airbnb's all-in pricing beginning next month.
Elsewhere on Tuesday, Barclays analyst Mario Lu lifted the firm's price target on Airbnb to $103 from $101, maintaining an Equal Weight rating on the stock, telling investors the firm is updating estimates for the global leisure travel industry.
Meanwhile, last week, Citi analyst Ronald Josey reiterated a Buy rating and $140 price target on Airbnb. The analyst said with Airbnb's 2022 “Winter Release,” which is focused on reducing the friction of new hosts joining the platform and improving overall discovery, he sees the company's supply growth continuing to ramp as more users adopt the platform.
However, Josey recognizes visibility into 2023 “remains mixed” due to the macro environment but believes Q3's travel trends appear to have continued into Q4.
