Here's Why Credit Suisse Sees Sharp Upside In This Travel Platform

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  • Credit Suisse analyst Stephen Ju initiated coverage on 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 Enterprises (SMEs) to shift travel expenses from unmanaged channels into Travel Management Companies (TMCs).
  • TMCs, the analyst says, have the realized benefits of cost savings, better access to inventory/content, fulfillment of safety/well-being requirements, and greater compliance/control over spending.
  • The acquisition of Egencia and Ovation has positioned the company as the market leader within the SME opportunity, notes Stephen Ju.
  • Risks for the company, the analyst cited, may include competition with other travel management companies, slower-than-expected SME migration to managed business travel, macroeconomic uncertainty, ongoing effects from COVID-19, and greater secular use of videoconference technologies as a substitute product.
  • Price Action: GBTG shares are trading higher by 5.03% at $5.85 on the last check Friday.
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