In a report released today, Peter Christiansen from Citi maintained a Buy rating on Global Business Travel Group (GBTG – Research Report), with a price target of $11.00.
Peter Christiansen has given his Buy rating due to a combination of factors that suggest a positive outlook for Global Business Travel Group. The company reported a slight beat on most metrics, with revenue growth of 8% year-over-year, surpassing consensus estimates. The professional services segment showed a strong performance, increasing by 10% year-over-year, which was ahead of both Citi and street estimates. Additionally, the travel segment, which constitutes a significant portion of the company’s revenue, was in line with expectations and demonstrated healthy growth.
Christiansen also highlights the potential for a favorable outcome regarding the FTC’s suit against the CWT acquisition, which could reverse its stance, similar to the UK’s CMA decision. The company’s adjusted EBITDA and free cash flow projections are robust, with expectations for continued margin expansion and improved conversion rates. Despite some headwinds, such as foreign exchange impacts and one-time M&A costs, the overall financial outlook remains strong, supporting the Buy rating with an expected share price return of 35.6%.