Fri, Aug 15, 2025, 12:05 PM 2 min read
In this article:
Airbnb, Inc. (NASDAQ:ABNB) is one of the 11 Best Under-the-Radar Stocks to Buy Right Now. On August 11, PhillipCapital upgraded the rating for Airbnb, Inc. (NASDAQ:ABNB) from Reduce to Neutral and increased the price target from $112 to $127.
This decision follows the recent Airbnb, Inc. (NASDAQ:ABNB) price performance. However, PhillipCapital did not change its revenue estimates for fiscal year 2025.
A vacation home luxury bedroom setup with stunning decor showing a desired getaway experience.
The firm kept its weighted average cost of capital (WACC) the same at 7.0%. However, PhillipCapital raised the terminal growth rate from 3.0% to 3.5%. The firm said that travel demand seems to be stabilizing.
PhillipCapital expects Airbnb, Inc. (NASDAQ:ABNB) to experience modest sales growth through 2025 because of steady demand for travel and strong growth in the Asia Pacific and Latin America regions.
The firm’s analysis suggests that new initiatives by Airbnb, Inc. (NASDAQ:ABNB), like local experiences, are not expected to scale and make meaningful contributions to revenue until fiscal year 2026.
Airbnb, Inc. (NASDAQ:ABNB) operates an online marketplace for short-and long-term homestays, experiences, and services in over 220 countries and regions. Acting as a broker, it charges a commission from each booking.
While we acknowledge the potential of ABNB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 11 Best Revenue Growth Stocks to Buy Now and 14 Best Aggressive Growth Stocks to Buy According to Analysts.
Disclosure: None. This article is originally published at Insider Monkey.
Comments