Morgan Stanley assumes coverage on Airbnb stock with $170 target

Morgan Stanley analyst Matthew Cost assumed an Equal-Weight rating on Airbnb (ABNB) with a $170.00 price target. The stock is currently trading at $169.19, with a GF Value™ of $176.23, indicating a 4.0% undervaluation. Airbnb's GF Score™ is 86/100, showing strong fundamentals but mixed momentum. Insider activity shows significant selling, with $685 million in sales over the past three months.

Morgan Stanley initiated coverage of online travel agencies, rating Booking Holdings (Overweight, $230 PT), Airbnb (Equal-weight, $170 PT), and Expedia (Underweight, $235 PT). The bank favors companies with unique inventory and strong direct traffic, citing AI's potential to drive high-value traffic. Morgan Stanley expects online travel bookings to grow at a 7% CAGR from 2026 to 2030, with fragmented supply becoming more valuable.

Airbnb announced a $250 million fund to support affordable and mixed-income housing projects, according to the Wall Street Journal. The company aims to address criticism over its role in housing affordability. Funds will be distributed as gap financing, with the first project in Austin, Texas, receiving $6.4 million. Airbnb expects below-market returns but anticipates the investment will leverage $5 billion in capital over a decade. The initiative is led by former Biden administration official D

Airbnb CEO Brian Chesky highlighted AI's role in the company's growth, citing 80% more software shipped, 45% of customer support resolved by AI, and 17% revenue increase to $3.6B in Q2. AI reduces costs and speeds up product development, with 60% of new code written by AI. Chesky also announced a $250M Housing Accelerator fund to address housing shortages.

Airbnb launched a $250M 'Housing Accelerator' initiative to fund stalled housing projects, with a focus on affordable and mixed-income developments. The program includes a $5M innovation prize and policy advocacy efforts. The first investment is $6.4M for an Austin project. Airbnb aims to unlock $5B in housing investment over a decade, addressing regulatory and financing challenges.

Airbnb (NASDAQ:ABNB) faces potential regulatory pressure in Europe as the EU proposes a framework to restrict short-term rentals in housing-stressed areas. Shares fell 3% on the news. The proposal requires evidence-based, targeted restrictions, which may limit broad crackdowns. Airbnb could benefit from reduced regulatory uncertainty and a focus on commercial operators rather than individual hosts.