CreditSuiss analyst Stephen Xu began reporting global business travel group Inc. GBTG with an outperformance rating and announced a price target of $9.
There is a secular trend among small and medium-sized businesses (SMEs) to shift travel expenditure from unmanaged channels to travel management companies (TMC).
The analyst says tmc has realised the benefits of cost savings, better access to inventory/materials, meeting safety/welfare requirements and better compliance/control over spending.
The acquisition of Egensia and Ovation has established the company as a leader in the SMB space, notes Stephen Xu.
Risks for the company, the quoted analyst said, could include competition from other travel management firms, a slow-expected transition to business travel managed by SMBs.
Macroeconomic uncertainty, the ongoing impact from COVID-19, and the greater secular use of travel video conferencing techniques as a replacement product.
Value addition: GBTG shares are trading at $5.85, up 5.03% at the last check on Friday.