Truist raised its rating on Airbnb to Hold from Sell following the lodging and leisure company's fourth-quarter 2025 report, pointing to resilient travel demand and improved near-term earnings assumptions.
Analyst C. Patrick Scholes said the brokerage nudged its 2026 adjusted EBITDA estimate to $4.79 billion from $4.78 billion, and lifted its 2026 earnings-per-share (EPS) forecast to $5.03 from $4.93. In addition to the 2026 revision, Truist published a set of 2027 projections that project adjusted EBITDA of $5.37 billion and EPS of $5.96.
On the strength of the updated 2027 outlook, Truist increased its price objective for the stock to $129, up from $107. Scholes explained the new target "is based on a blended 20.0x multiple on our 2027E Adj EBITDA," noting that the multiple applied is unchanged from the prior valuation approach.
According to Truist's calculations, Airbnb is trading at 24.9x and 20.2x the firm's 2026E and 2027E adjusted EBITDA estimates, respectively. Scholes said the 2027 metrics support the current valuation and leave scope for upside should the company meet the forecasted figures.
The upgrade by Truist comes amid broader indications of strength in travel markets even as geopolitical tensions in the Middle East persist. Bernstein analyst Richard Clarke observed that U.S. hotel performance "inflected in February to 4.3% growth, the fastest in more than one year," and that momentum remained "staying strong through March." Clarke also said Asia-Pacific "also had a strong February," while Europe "has held steady." He added that online travel agencies were experiencing volume growth in the high single digits to low double-digits range.
Market and valuation context
Truist's decision reflects a combination of slightly higher short-term profitability expectations and a set of explicit 2027 assumptions that justify a higher price target under the same multiple framework previously used by the firm. The broker's uplift to Hold signals a more neutral stance relative to its prior Sell rating, while maintaining discipline on valuation methodology.
What Truist changed
- 2026 adjusted EBITDA: raised to $4.79 billion from $4.78 billion
- 2026 EPS: raised to $5.03 from $4.93
- 2027 adjusted EBITDA: projected at $5.37 billion
- 2027 EPS: projected at $5.96
- Price target: raised to $129 from $107, using a blended 20.0x multiple on 2027E adjusted EBITDA
Investor takeaway
Truist's revised stance rests on modestly stronger earnings assumptions for 2026 and a more constructive 2027 outlook that supports a higher target while keeping the valuation multiple consistent. Broader travel indicators cited by industry analysts show positive momentum across regions, which underpins the firm's more favorable projections for Airbnb's revenue and profitability trajectory.