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Wall Street weighs in on Airbnb and DoorDash

Ines Ferré
·Markets Reporter
·2 min read

Airbnb (ANBN) and Doordash (DASH) received coverage initiations from Wall Street analysts on Monday, following their public debuts in December.

Credit Suisse initiated Airbnb with a Neutral rating and a price target of $156 saying the company is a beneficiary of the “ongoing substitution effect away from hotels.”

“We expect this substitution effect to accelerate further due to pandemic-driven changes in behavior, with incremental consumers likely trying the category for the first time and choosing to stick after a positive experience,” wrote analyst Stephen Ju in a note to investors.

Ju also sees Airbnb as a leader among online travel sites. In 2019, Gross Bookings were ~2x the size of Booking.com’s alternative accommodations business and ~3x the size of Expedia’s Vrbo – making it the category leader,” he added.

Brian Chesky, CEO of Airbnb, is shown on an electronic screen at the Nasdaq MarketSite, Thursday, Dec. 10, 2020, in New York. The San Francisco-based online vacation rental company holds its IPO Thursday. (AP Photo/Mark Lennihan)
Brian Chesky, CEO of Airbnb, is shown on an electronic screen at the Nasdaq MarketSite, Thursday, Dec. 10, 2020, in New York. The San Francisco-based online vacation rental company holds its IPO Thursday. (AP Photo/Mark Lennihan)

Airbnb was also initiated at Oppenheimer with a Perform rating on valuation.

“We believe ABNB is the best positioned travel company into the post-Covid recovery based on its strong global brand,” wrote Jed Kelly in a note to investors.

“Additionally, we see ‘work from anywhere’ trends enduring and providing strong tailwinds for ABNB to penetrate its massive TAM [total addressable market],” he added.

Oppenheimer initiated coverage of DoorDash with a Perform rating.

“The company’s early focus on suburban markets has created a unique first-mover advantage, yielding a market-leading 48% share of third-party online delivery,” wrote Jason Helfstein in a note to investors.

Meanwhile UBS initiated coverage of DoorDash with a Neutral rating and a $150 price target in a note from analyst Eric J. Sheridan titled, “With a Valuation Having DASH’d, We Wait to Order.”

DoorDash surged 85% on its first day of trading opening at $182/share. The stock on Monday was down more than 2% closing at 139.19.

Airbnb opened at $146 a share on its first day of trading in December. The stock closed at $139.15 on Monday as the broader markets sold off during the session.

Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre

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