Morgan Stanley analyst Brian Nowak downgraded Airbnb (ABNB) Wednesday from "equal weight" to "underweight" amid concerns over constrained supply growth.

Nowak dropped the target price-per-share from $110 to $80. He also made a case that shares of the short-term home rental company could potentially drop to $60.

Shares of Airbnb on Wednesday closed at $91.50, down $1.62, or 1.74%.

The relegation from Nowak comes amid fears of waning travel demand due to a looming recession and inflation.

Airbnb logo
Airbnb logo is seen displayed in this illustration taken, May 3, 2022 Dado Ruvic/Reuters

In early November, shares of Airbnb had a one-day dip of more than 10% following third-quarter earnings that beat expectations but gave disappointing guidance for the fourth quarter.

Keybanc analyst Justin Patterson maintained an "overweight" rating on the company in late November.

Some analysts have noted that the post-pandemic travel boom may be fading. Deepak Mathivanan of Wolfe Research cut his ratings on Expedia Group, Chewy, Shopify, Tripadvisor, and Booking.

On Wednesday, Expedia Group (EXPE), which owns Airbnb competitor Vrbo, saw its prices of shares close at $90.79, down $6.12, or 6.32%.