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- Shares of RBNB and Dordesh fell on Monday after analysts downgraded shares of new public companies.
- Both companies rallied last week as outsourced demand prices bounced back from their IPO levels.
- Gordon Haskett downgraded Airbnb from “Buy” to “Underperform” and expects the stock to fall about 20% from current levels.
- DA downgraded Davidson from a “buy” to a “neutral” rating, adding that there was little room for future error in the company’s share prices.
- Watch Dordesh Trade Live here.
- Watch RBNB Trade Live here.
Both RBNB and Dordesh tumbled on Monday as analysts downgraded ratings after both companies entered the massive public market.
RBNB sank 10.1%, while Dordesh sank 13.6% on intraday losses. Last week the two companies raised a combined raised 7.7 billion in initial public offerings, setting a record year for IPOs. In their first day of trading, strong demand for shares of companies gained, but analysts covering companies are worrying that stocks are trading at a reasonable level.
Gordon Haskett changed his rating for Airbnb on Monday from “Buy” to “Underperforming”, dropping his bullish estimate for Payday just a week ago. The home-sharing company’s valuation more than doubled after its Thursday debut, “more than stretched,” Pay The said. Airbnb also trades at twice its estimated total booking value, where the average online online travel group trades at 0.6 times, Golden Hasket said.
The pay firm raised its price target from $ 77 to 3 103, but that level still shows a decline of about 20% from current levels.
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Separately, DA Davidson made Dordash “neutral” from “bye” following the firm’s 86% opening rally. The firm still feels that Dordesh is qualified to trade on premium multiples because of its leadership in the food-delivery sector, but noted that there is little room for error in its share price.
DA Davidson raised its price target for its target range from $ 93 to $ 150. That level indicates a slight decrease from the current share price. No other analysts have started rating on Dordesh shares.
Despite the change in analyst sentiment and Monday’s losses, both companies are trading well compared to the prices of their IPOs. Their rallies have sparked a new test of market optimism, with some strategists expressing concern that external demand for new issuances is a feature of the dot-com-era greed.
Dordesh traded at 7 157.51 as of 3:10 a.m. Monday. RBNB trades at 129.33.
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