- Credit Suisse analyst Stephen Ju initiated coverage on Global Business Travel Group Inc (NYSE: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.
Alaska Air Lowers FY23 EPS Outlook To $4.25 – $4.75 From $5.50 To $7.50 Prior, Vs, $5.24 Estimate
Fourth Quarter and Full Year 2023 Forecast Information
Q4 Expectation
Capacity (ASMs) % change versus 2022
Up 11% to 14%
Total
