The recent pullback in Airbnb creates an attractive entry point for investors looking to buy a quality growth company, according to Bernstein.
"Recent share price weakness presents a compelling entry point, with bear fears largely discredited following Q2," wrote analyst Richard Clarke in a Tuesday note to clients.
"We see 30%+ potential upside, with an H2 acceleration as peers begin to slow, and ancillary revenue announcements in 2024 as key catalysts."
Despite the recent stumble, Clarke remains bullish on the long-term outlook for the travel company he believes has one of the deepest moats, optionality and fastest core top- and bottom-line growth.
ABNB 1M mountain Airbnb shares over the last month Although Airbnb looks expensive on a near-term basis, shares look "increasingly cheap" when accounting for the revenue increase from additional opportunities, Clarke wrote.
Persons:
Bernstein, Richard Clarke, Clarke, — CNBC's Michael Bloom
Organizations:
Holdings