- CreditSuisse Analyst Stephen Ju initiated the reporting Global Business Travel Group Inc GBTG with an outperform rating and announced a Price target of $9.
- There is a secular trend among small and medium-sized businesses (SMEs) to shift travel expenses from unmanaged channels to Travel Management Companies (TMCs).
- TMCs, says the analyst, have realized benefits of cost savings, better access to inventory/content, meeting security/wellness requirements, and better compliance/control over spend.
- The acquisition of Egencia and Ovation has positioned the company as a leader in the SMB space, notes Stephen Ju.
- Risks to the company, the quoted analyst said, may include competition from other travel management firms, a slower-than-expected transition to managed business travel by SMBs, macroeconomic uncertainty, ongoing impacts from COVID-19, and greater secular use of travel Video conferencing technologies as a replacement product.
- Price promotion: GBTG shares are trading up 5.03% at $5.85 on the last check Friday.
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