According to Bernstein, Airbnb is on track to become the largest Western travel platform within the next five years, making it a good entry point for investors. Richard Clarke initiated Airbnb as an outperformer with a price target of $143, indicating a roughly 30% upside from Tuesday’s close of $110.81. Shares were slightly lower in premarket trading. He sees the vacation rental industry as valued at about $150 billion, and noted that the space could see single- to high-single-digit growth going forward. He also said Airbnb is well positioned to grow in other markets, such as hotels, experiences and extended stays. “Airbnb is a unique business within travel, with a triple moat of an aspirational brand, a unique product set and a loyal customer base, all focused on one of the fastest swimming lanes in travel,” Clarke said in a tuesday note to clients. Clarke said Airbnb should be the largest Western travel platform by 2027, while the consensus is that the company will achieve this feat by 2029. It should also be the most profitable online travel agency within two years, beating competitors like Expedia and Booking. how. Bernstein sees a record third quarter that is 5% ahead of estimates for room nights topping 100 million. Airbnb has been able to grow while reducing marketing costs, which points to the strength of the brand, he said. To be sure, there are concerns about supply and meeting demand as the company enters new markets. There has also been talk of Airbnbs being “hotels with chores” and complaints about extra fees, Clarke said. The looming threat of more regulation remains, although Clarke said those concerns have subsided and the platform has demonstrated its ability to preform independently. And Airbnbs, despite being considered a “good value”, are still more expensive than hotels, which are currently still depressed by the pandemic. But “any modest backlash against Airbnb isn’t stifling demand either,” Clarke said. And now is a good time to buy given its “attractive” entry point. “Even if you have a negative view on travel demand, we see Airbnb as the best stock to own given its more defensive position, faster growth and more attractive valuation on a 4-year multiple,” he added. Airbnb shares have struggled this year, losing 33%. — CNBC’s Michael Bloom contributed to this report.