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Investing.com — Airbnb Inc (NASDAQ:ABNB) stock fell 8% in early Monday trading after a Piper Sandler analyst downgraded the shares.
Analyst Thomas Champion downgraded Airbnb from overweight to neutral, lowering the price target to $169 from $215.
In a research note, the analyst said the downgrade was based on elevated Street expectations, the current valuation, and the fact that it being a pure-play focus may be less desirable as travel normalizes.
Champion told investors they “launched on ABNB with an Overweight rating in January 2021 thinking this name had a near-term advantage with an alternative accommodation focus during the pandemic. We also thought ABNB benefited from a longer-term structural shift toward alternatives and away from traditional lodging.”
However, while they still view ABNB as a “top-tier online travel asset and leader in alternative accommodations,” the firm believes it is overvalued compared with its peers.
Champion’s comments are in contrast to Jefferies analyst John Colantuoni who assumed coverage of Airbnb with a buy rating on Friday. Colantuoni said he sees upside to current consensus estimates.
