Airbnb looking at a bleak winter, says KeyBanc: 4 big analyst cuts
Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: a sell initiation at WK Kellogg, and downgrades at Airbnb, Norfolk Southern , and Bread Financial.
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Airbnb (NASDAQ:ABNB) shares were down nearly 3% premarket Tuesday after KeyBanc downgraded the company to Sector Weight from Overweight, as reported in real time on InvestingPro.
The analysts are particularly concerned about short-term margin and top-line growth:
Our view is margins have reached a [near-term] peak and revenue growth could decelerate to +11% y/y in 2024E as consensus works as room night [and experiences] (RNE) and [average daily rate] ADR growth moderates.
They added that their forecasts for earnings before interest, taxes, depreciation and amortization (EBITDA) for 2024E and 2025E are now 8% and 5% below the analyst consensus, respectively.
The analysts said they believe the risk to RNE growth «begins in 4Q» in part due to the new restrictions against Airbnb and other short-term rentals in New York City, which they say «could accentuate q/q declines» given New York's popularity as a New Year's Eve destination.
«Net, we believe it is more likely that Airbnb posts decelerating RNE growth into year-end, which makes Street forecasts for 14% annual growth through 2025 too aggressive,» say the analysts.
Airbnb is set to report its Q3/23 earnings on Nov 1.
Shares were lately trading at $132.75 in the premarket.
Goldman Sachs initiated coverage on WK Kellogg (NYSE:KLG) with a Sell rating and a price target of $11.00 following the completion of Kellogg Company's (NYSE:K) spinoff of its North American cereal business into the
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