Airbnb Inc (NASDAQ:ABNB) stock fell 0.69% (As on January 13, 11:11:55 AM UTC-4, Source: Google Finance) after Wells Fargo upgraded the company to Equal Weight from Underweight with a price target of $128, up from $118. The firm cites two years of share underperformance combined with a portfolio of upside options, highlighted by the hotel supply and sponsored listings opportunities, and relative insulation from AI risk as an opportunity.

Moreover, Barclays has also upgraded Airbnb to Equal Weight from Underweight with a price target of $120, up from $107. Barclays cited diminished downside risks to shares and potential upside drivers to room night growth, including reserve-now-pay-later options, hotels expansion, and the upcoming 2026 World Cup. The investment bank believes these factors could position Airbnb to deliver best-in-class room night growth among scaled online travel peers, while margins may be reaching a new relative floor. Despite the upgrade, Barclays tempered its optimism, noting that Airbnb remains largely a monoline business focused on alternative accommodations and “hasn’t proven its ability to scale in adjacencies,” despite owning HotelsTonight since April 2019 and making several attempts at expanding its experiences initiative since 2016.

Further, B.Riley has upgraded ABNB from Neutral to Buy and raised its price target to $170.00 from $140.00. The upgrade reflects what B.Riley considers an attractive valuation for Airbnb alongside prospects for sustained healthy growth and margin expansion. The firm sees potential upside in a stable travel demand environment. B.Riley believes Airbnb will benefit from secular growth in short-term rentals and international expansion, with additional uplift expected from the broader rollout of “reserve now pay later” (RNPL) and the addition of hotel inventory in supply-constrained markets. The firm identified the pace of innovation as a key advantage for Airbnb, suggesting that a differentiated offering and management initiatives position the platform well to benefit from an AI-led transformation in the travel industry. At 15.6x EV/adjusted EBITDA, B.Riley finds the risk/reward profile attractive for Airbnb shares, with expectations that margins will benefit from scale, AI implementation, and reduced costs of launching new services.

Meanwhile, the company forecast upbeat quarterly revenue after posting higher third-quarter results, aided by strong bookings in markets such as Latin America and Asia Pacific. The San Francisco-based company has customized its platform for regional audiences, adding payment options and launching local marketing campaigns. Airbnb’s fourth-quarter revenue forecast of $2.66 billion to $2.72 billion was largely above Wall Street estimates $2.67 billion, according to data compiled by LSEG.