Truist Upgrades Airbnb After Strong Earnings Outlook
Truist has upgraded Airbnb from “Sell” to “Hold” following its fourth-quarter 2025 results in the lodging and leisure sector. The upgrade reflects continued strength in global travel demand and improved financial expectations for the company’s future performance.
Higher Earnings Forecasts for 2026
According to analyst C. Patrick Scholes, Airbnb’s 2026 adjusted EBITDA forecast has been slightly raised to $4.79 billion from $4.78 billion. At the same time, earnings per share (EPS) are now expected to reach $5.03, up from the previous estimate of $4.93. These upward revisions highlight growing confidence in Airbnb’s profitability.
New 2027 Projections and Price Target Increase
Truist also introduced its initial projections for 2027, forecasting adjusted EBITDA of $5.37 billion and EPS of $5.96. Alongside these estimates, the firm raised its price target for Airbnb stock to $129, up from $107, signaling a more optimistic long-term outlook.
Valuation Remains Consistent
The new price target is based on a blended 20x multiple applied to the company’s projected 2027 adjusted EBITDA, maintaining Truist’s existing valuation methodology. Currently, Airbnb is trading at approximately 24.9x its 2026 estimated EBITDA and 20.2x its 2027 estimate, indicating that the stock remains fairly valued relative to future expectations.
Travel Sector Strength Supports Upgrade
The upgrade comes amid continued resilience in the global travel industry, despite ongoing geopolitical tensions in the Middle East. Strong travel demand has supported growth across multiple regions and segments.
Global Travel Trends Show Positive Momentum
Recent data also supports the bullish outlook. Bernstein analyst Richard Clarke noted that U.S. hotel performance accelerated in February, reaching 4.3% growth—the fastest pace in over a year—with momentum continuing into March.
He also highlighted solid performance in Asia-Pacific markets, steady trends in Europe, and increasing booking volumes for online travel platforms, which are growing in the high single-digit to low double-digit range.
Outlook: Room for Further Upside
Scholes emphasized that Airbnb’s projected earnings growth into 2027 supports its current valuation while still leaving potential for further upside. As travel demand remains strong, the company appears well-positioned to benefit from ongoing industry momentum.
