Deutsche Bank analyst Lee Horowitz upgraded Airbnb to Buy with a $154 price target, implying 33% upside from recent closing prices. The upgrade follows Airbnb's latest quarterly report showing 10% nights growth, outpacing Street estimates by 3.6 percentage points despite challenging comparisons. The company's first-quarter revenue forecast also topped Wall Street estimates, driving shares up more than 5% in premarket trading.

Horowitz highlighted two key initiatives driving growth: the Reserve Now Pay Later program and a simplified fee structure for hosts. These changes reduced pricing friction and contributed over 200 basis points of growth in the quarter. The analyst expects both initiatives to remain tailwinds into 2026, supporting at least double-digit revenue growth for the year. While Airbnb guided for conservative first-quarter results, Horowitz noted that quarter-to-date trends remain strong as comparisons ease.

The bank also pointed to a robust product pipeline extending into 2026 and 2027, including scaling benefits from the new fee structure, expansion of the hotel business, and AI-native search capabilities. Longer-term opportunities include Sponsored Advertising and growth in Experiences and Services. Despite not expecting adjusted core profit margin growth this year due to continued investments in marketing, product, and technology, Deutsche Bank sees Airbnb's product momentum and favorable foreign exchange benefits positioning the company for sustained revenue expansion.