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.
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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