BTIG Analyst Maintains Neutral Stance on Lyft and Airbnb Amid Shifting Market Trends

BTIG analysts have recently reiterated their ratings for both Lyft and Airbnb, offering insights into the current performance and future outlook for these major travel and transportation companies. While Lyft sees strengthening ride trends, Airbnb is navigating a period of moderating growth compared to its industry peers.

Key Takeaways

• BTIG maintains a Neutral rating on Lyft, citing accelerating ride trends and potentially exceeding second-quarter guidance.

• The firm also holds a Neutral rating for Airbnb, observing a slowdown in performance indicators relative to competitors.

• BTIG expresses a longer-term preference for larger market leaders in the rideshare and delivery sectors.

Lyft's Strengthening Ride Trends

BTIG has reaffirmed its Neutral rating on Lyft ahead of its upcoming August 6 earnings report. The firm's analysis of credit card receipt data indicates that Lyft's ride growth has accelerated to its highest rate since early 2024. While average fares are declining year-over-year as anticipated, market share has remained stable.

BTIG has adjusted its second-quarter bookings forecast to the upper end of Lyft's guidance range and anticipates EBITDA estimates to surpass guidance. For the full year, the firm projects bookings growth of 13%, exceeding Wall Street consensus. Despite these positive tactical indicators, BTIG maintains a preference for larger players in the rideshare and delivery markets for long-term investment.

Recent developments for Lyft include its expansion into Puerto Rico and a price target increase to $20 by Oppenheimer, driven by reduced concerns over robotaxi competition. However, Canaccord Genuity downgraded Lyft to a Hold rating, citing uncertainties related to autonomous vehicle technology. Additionally, Lyft, along with Uber, is facing new minimum pay regulations for drivers in New York City.

Airbnb Faces Slowing Trends

Jake Fuller, an analyst at BTIG, maintained a Neutral rating on Airbnb, noting a moderation in key performance indicators when compared to online travel agency (OTA) competitors like Booking Holdings and Expedia Group. Quarter-to-date checks reveal that Airbnb's site traffic comparisons have worsened, a trend also observed in U.S. receipt data.

This contrasts with positive momentum seen in competitors, which BTIG rates as Buy. Fuller suggests that Airbnb might experience mid-single-digit room night growth this quarter, aligning with BTIG's estimates and market consensus. This growth trajectory is considered reasonable given Airbnb's 9.68% revenue growth over the past twelve months.

BTIG favors Booking Holdings over Airbnb due to Booking's lower valuation multiple and higher projected earnings per share growth. The firm also notes intensifying competition in the travel activities segment, with both Airbnb and Booking increasing their focus on this area.

In other news, Airbnb has launched new offerings, including Airbnb Services and Experiences, alongside a redesigned app. However, the company is also facing regulatory challenges in Spain, where over 65,000 listings have been ordered for removal. Analyst ratings for Airbnb remain mixed, with Bernstein reiterating an Outperform rating and DA Davidson maintaining a Buy rating, while Cantor Fitzgerald holds an Underweight rating.

Sources

• BTIG maintains Lyft stock rating as ride trends strengthen By Investing.com, Investing.com.

• BTIG maintains Airbnb stock at Neutral amid slowing trends By Investing.com, Investing.com.