Global Business Travel Group (GBTG – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Toni Kaplan from Morgan Stanley maintained a Hold rating on the stock and has a $7.00 price target.
Toni Kaplan has given his Hold rating due to a combination of factors impacting Global Business Travel Group’s performance. The company recently reduced its revenue and adjusted EBITDA guidance for the fiscal year by 4% and 6%, respectively, influenced by a slowdown in demand and flat transaction growth. This economic slowdown has been evident across all regions, with growth rates declining in the Americas, EMEA, and Asia. Additionally, while certain sectors like financial services and pharmaceuticals showed strength, industries affected by tariffs, such as consumer and retail, experienced negative trends.
Despite these challenges, there were some positives in the company’s financials. Margins improved due to effective cost control measures, and the adjusted EBITDA margin exceeded expectations, showcasing a 260 basis point expansion. However, the overall revenue growth fell short of estimates, missing by approximately 200 basis points. Given the cyclical nature of corporate travel trends, which significantly influence GBTG’s stock, these mixed results have led Toni Kaplan to maintain a Hold rating while adjusting the price target to $7.
Kaplan covers the Industrials sector, focusing on stocks such as Republic Services, Waste Connections, and ARAMARK Holdings. According to TipRanks, Kaplan has an average return of 2.4% and a 55.56% success rate on recommended stocks.