Wells Fargo analyst Brian Fitzgerald upgraded shares of Airbnb Inc. and DoorDash Inc. DASH, +24.92% to overweight from equal weight Friday, following earnings reports that he said showed momentum coming out of the pandemic. “Within our coverage group, we view ABNB as likely the strongest play on the future of remote and hybrid work,” he wrote, while maintaining a $200 price target on Airbnb’s stock. He was encouraged by momentum in urban regions, which represented 40% of nights booked in the latest quarter. In Fitzgerald’s view, a rise in urban travel is “a shift back to one of Airbnb’s power alleys.” For DoorDash, he wrote that the company’s beat-and-raise quarter “is large enough to offset the rotation to ‘value’ that has afflicted ‘growth’ stocks” so far this year. Upbeat indications from the latest report included sequential and year-over-year increases in average order value among existing customers and a more than doubling of subscriptions to the company’s DashPass product relative to a year earlier, he wrote. Fitzgerald raised his price target on DoorDash’s stock to $170 from $165. Airbnb shares are up 2.2% in Friday morning trading, while DoorDash shares are up 14.8%.
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