B Riley upgraded Airbnb stock to Buy from Neutral, raising its price target to $170. The firm sees improved growth visibility and margin expansion ahead, making the valuation attractive for 2026. A major catalyst is the 'reserve now, pay later' feature.

After a successful U.S. rollout, this payment option boosted room nights by 100 to 150 basis points. Analysts expect a full-quarter impact of 200 to 300 basis points as the feature expands internationally next year. Airbnb is also adding hotel inventory in supply-constrained markets like New York and Los Angeles, leveraging its HotelTonight acquisition to capture more urban demand.

On the bottom line, B Riley points to operational leverage. AI-driven customer support has already cut live contact rates by 15% in the U.S., with global rollouts planned. While investments in Experiences created a 160 basis point drag on EBITDA margins in 2025, those costs should ease as the platform matures.

The brokerage forecasts $100 billion in bookings for 2026, citing a favorable risk-reward at 15.6x EV/EBITDA.