Airbnb slashed at Jefferies on expected slowdown in bookings: 4 big analyst cuts

Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Airbnb, Splunk, Hershey, and Diageo.

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Airbnb cut to Hold at Jefferies

Jefferies downgraded Airbnb (NASDAQ:ABNB) to Hold from Buy and cut its price target to $140.00 from $155.00.

The analysts noted a slowdown in bookings for Airbnb, which increases the risk of not meeting consensus expectations, making the story more reliant on potential take rate expansion.

However, Jefferies’ detailed analysis suggests that the opportunities for monetization are largely reflected in Airbnb's current stock price. This is highlighted by Airbnb's valuation being 65% higher than the average in the Internet sector, despite having similar EBITDA growth.

Splunk cut to Hold at Truist

Truist Securities downgraded Splunk (NASDAQ:SPLK) to Hold from Buy with a price target of $157.00 following Q3 results yesterday, as reported in real-time on InvestingPro.

The analysts noted that Splunk had a strong quarter with revenue and non-GAAP operating profit exceeding both expectations and guidance. On Sept 21, Cisco Systems (NASDAQ:CSCO) announced its plan to acquire Splunk for $157 per share in cash, which represents approximately $28B in equity value. Truist noted that the company’s shares approach the deal price.

“We continue to believe the deal is favorable for SPLK shareholders and expect it to close by the end of CY24,” commented the analysts.

Two more downgrades

Piper Sandler downgraded Hershey (NYSE:HSY) to Neutral from Overweight and cut its price target to $200.00 from $240.00.

JPMorgan downgraded Diageo (NYSE:DEO) to Neutral from Overweight.

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