-- Airbnb (ABNB) is expected to generate durable revenue growth from product initiatives around Hotels, Reserve Now Pay Later and AI search, Oppenheimer said in a Monday note.
The report pointed to Hotels, particularly in Manhattan, where Airbnb is still about 3 million nights below 2019 levels because of tighter regulation.
Hotels could add about 3 points to nights with minimal uplift, while offering larger upside if conversion and awareness improve, the note added.
"We see ABNB as better positioned to absorb travel-corridor dislocations from oil-supply shocks, while benefitting disproportionately from World Cup demand, where rentals are pacing above '25-levels in host cities," the report said.
The AI opportunity looks more tangible for investors because the company's brand, direct traffic and unique supply may help it avoid some of the risks facing competitors, it said.
Oppenheimer upgraded Airbnb to outperform from perform and set a $180 price target.
Price: $141.30, Change: $-0.36, Percent Change: -0.25%