Online lodging marketplace Airbnb Inc. (ABNB) is attracting some positive analyst attention, explains Fernanda Horner, in Bernie Schaeffer's advisory service, Schaeffer's Investment Research.
More specifically, Cowen and Company upgraded the security to "outperform" from "market perform," and lifted its price objective to $220 from $150.
The brokerage noted the company will continue to benefit from market growth for alternative accommodations, as it is estimated to have over 50% market share among global online travel agents (OTAs).
Plus, the analyst noted that Wall Street is underestimating bookings growth for 2022, adding it expects gross bookings to increase to $126 billion by 2026.
The brokerage bunch was already bullish towards AirBnb stock, making this bull note all the more impressive. However, there is still plenty of room for upgrades, which could push the equity even higher. Of the 29 analysts in question, 16 say "buy" or better, while 13 say "hold."
At last check, ABNB was up 4.5% at $174.12. The security has struggled with overhead pressure at the $176 level in recent weeks, after pulling back from its Feb. 11 record high of $219.94.
Nonetheless, the $129 mark served as a floor for the equity in both May and July, while the 40-day moving average has guided the shares higher since August. Year-to-date, ABNB is up 17.4%.
The options pits are brimming with activity today. So far, 21,000 calls and 3,308 puts have crossed the tape, which is five times the intraday average. Most popular by far is the October 175 call, followed by the 180 call in that series, both of which expire at the end of the week.
For those wanting to speculate on the stock's next move, options are affordable at the moment. The equity's Schaeffer's Volatility Index (SVI) of 44% sits higher than 16% of readings from the past year, suggesting options players are pricing in low volatility expectations for ABNB right now.
