Morgan Stanley Sees Airbnb’s Property Supply Slowing
Skift Take
- Morgan Stanley cut their rating on Airbnb to Underweight from Equal Weight, slashing its target price to $80 from $100.
- Marriott International announced plans to introduce more than 35 luxury hotels in 2023 to its portfolio of luxury brands.
- STR reported US lodging data for the week ended 12/3. Hotel RevPAR was up 11.7% year over year while up 1.2% versus 2019.
The DJIA rose 2 points while Nasdaq was down 56, the S&P 500 fell 7 points and the 10 year treasury yield plunged another .11 to 3.41%. Lodging stocks were mixed. MCG was the big mover, down -8% while VCSA traded down to another new low before bouncing a bit.
Morgan Stanley cut their rating on Airbnb to Underweight from Equal Weight, slashing its target price to $80 from $100. Their bear case scenario has the stock plunging to $60. MS believes ABNB’s supply of properties will see slowing growth down to 7% annually through 2025, down from the 12% pace from 2018 to 2022. MS is not very confident in the 7% growth number. They also cut their estimates for room nights booked for 2023 and 2024. With slowing listings growth and occupancy not exactly surging, MS is not very confident, hence the downgraded and price target cut.
Keybanc cut their price target on RLJ Lodging Trust to $14
