TSX runs higher on rate cut expectations
Investing.com - BTIG has raised its price target on Global Business Travel Group Inc. (NYSE:GBTG) to $10.00 from $8.00 while maintaining a Buy rating on the stock. The company’s stock, currently trading at $8.17, has shown impressive momentum with a 15% return over the past year. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $7 to $11.
The price target increase follows GBTG’s second-quarter earnings report, after which the stock rallied and pushed through BTIG’s initial $8 target set during the firm’s coverage launch in March. InvestingPro analysis suggests the company is currently trading below its Fair Value, with strong financial health indicators including a healthy current ratio of 1.66 and impressive gross profit margins of 61%.
BTIG notes that current estimates have yet to incorporate GBTG’s pending acquisition of CWT (Private), which is expected to close within the current quarter and could add approximately $13 billion to the company’s 2026 total transaction value.
The research firm points out that despite GBTG’s significant stock movement since early August, its valuation remains reasonable on a pro forma basis, trading at approximately 8x 2026 EBITDA compared to the travel industry average of about 10x.
While BTIG’s revised price target represents a multiple of 11x its 2026 EBITDA estimate, which is a premium to the industry average, the firm calculates it would only be 8.5x on a pro forma basis after factoring in the CWT acquisition.
In other recent news, American Express Global Business Travel (AmexGBT) reported its financial results for the second quarter of 2025, showing a mixed performance. The company announced earnings per share (EPS) of $0.03, which fell short of the expected $0.08, marking a 62.5% miss. On a positive note, AmexGBT’s revenue slightly exceeded projections, reaching $631 million compared to the anticipated $628.43 million. These developments come amid ongoing evaluations by analysts and investors. The company’s financial outcomes are being closely watched by market participants. While earnings did not meet expectations, the revenue figures provided some relief. Analysts and firms continue to assess the implications of these results on the company’s future performance. Investors are keeping an eye on how AmexGBT will navigate the current economic landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.