Airbnb's stock slumps after KeyBanc downgrade on expectations the leisure travel recovery is sagging

KeyBanc downgraded Airbnb Inc.'s stock and said leisure travel is expected to pull back after a strong recovery from the peak pandemic years.

KeyBanc downgraded Airbnb Inc.’s stock on Tuesday, saying leisure travel is expected to pull back after a strong recovery from the peak pandemic years, pressuring two key metrics for the vacation rental platform.Analysts led by Justin Patterson downgraded the stock to sector weight from overweight, or the equivalent of buy, and said they see elevated risk for room nights and experiences, or RNE, and average daily rates, or ADR.

“Further, restrictions in New York City — a popular New Year’s Eve destination — could accentuate quarter-on-quarter declines,” the analysts wrote, referring to the implementation of Local Law 18 on Sept. 5, which imposes severe restrictions on short-term rentals in the city. See also: Airbnb’s biggest competitor now has a rewards program, but it’s nothing to write home about

“Based on our lower EBITDA forecast, we view fair value as $138,” said the note. Airbnb stock closed Monday at $136.56.

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