Mizuho Says This Top Pick Can Leverage AI to Expand its Dominance

 Investing.com -- Mizuho has named Airbnb, Inc. (NASDAQ: ABNB) as its top pick across Internet coverage, raising its price target to $245 from $200 and maintaining an Outperform rating on the stock, which currently trades at $176.37.

The firm sees Airbnb positioned to build a multi-billion dollar hotel business on its platform while leveraging artificial intelligence to expand its dominance in the travel category beyond its legacy short-term rental and accommodation business. Mizuho notes that the company's significantly improved operating culture is increasingly showing up in results, with significant runway remaining for both the company and its shares.

The analyst firm increased its estimates above consensus, projecting room night growth of approximately 12% in 2027 and 11.5% in 2028. Revenue growth is expected at 15.4% in 2027 and 14.8% in 2028, with earnings per share growth of 18% and 29%, respectively.

Mizuho forecasts adjusted EBITDA of $6.16 billion in 2027, compared to the Street estimate of $5.77 billion, and $7.38 billion in 2028 versus Street estimates of $6.57 billion.

The firm expects EPS of $6.43 in 2027 and $8.26 in 2028, compared to consensus estimates of $6.23 and $7.35. The bullish case centers on Airbnb's improving operating culture driving faster execution and accelerating growth in the core business, marking the fastest room night growth in three years.

Mizuho highlighted upcoming product cycles including hotel supply expansion, dynamic pricing, advertising, loyalty programs, and AI expansion into new verticals. The firm noted that hotel growth accelerated from the second quarter to the third quarter, contributing an estimated 70 basis points of growth.

The price target of $245 is based on 30 times 2028 estimated GAAP EPS and 25 times enterprise value to EBITDA. The stock currently trades at approximately 29 times 2027 estimates and 23 times 2028 estimates.