Airbnb's Growth Initiatives Support 2027 Outlook, BofA Says

10:52 AM EST, 11/06/2026 (MT Newswires) -- Airbnb's (ABNB) strong growth momentum and product initiatives could support further expansion in 2027, although its premium valuation may limit upside, BofA Securities said in a Friday note. The company's Q3 growth was supported by platform improvements, all-in pricing benefits, international expansion, and reserve now, pay later growth to 40% of eligible gross booking value. Looking ahead, broader pricing initiatives, including dynamic pricing, host-funded discounts, and hotel expansion on a bigger base could be incremental drivers for 2027. BofA raised its Q4 estimates for gross booking value and revenue by 2% and 3%, respectively. Meanwhile, it lowered its EBITDA margin estimate to 28.2% from 28.7% on higher marketing and AI investments. For 2027, the investment firm raised its revenue expectation by 2% and EBITDA expectation by 3%, with the margin expected to reach 36.4%, compared with 36.2% in 2026, despite continued growth investment. BofA adjusted its price target to $205 from $195 and maintained its neutral rating on Airbnb. The company's shares were up nearly 9% in early Friday trading. Price: 184.66, Change: +14.53, Percent Change: +8.54