TBO Tek stock surges 11% after Goldman Sachs 'buy' rating, highlighting growth potential

From Mint: 2024-06-24 05:55:15

TBO Tek’s share price surged 11% to ₹1,764 after Goldman Sachs initiated coverage with a target of ₹1,970. The firm is bullish on TBO due to its small market share in a vast travel sector, revenue growth potential, and strong sales model.

Goldman Sachs praises TBO’s focus on hotels and foresees a 21% revenue CAGR till FY30. The company’s feet-on-street sales approach and exposure to the growing Indian outbound travel market are seen as key strengths by the brokerage.

TBO’s strong presence in key markets like the Middle East, India, and Latin America positions it well for growth compared to other B2B travel platforms. The network effect from its large supply base and low competition enhance its competitive advantage.

Goldman Sachs highlights TBO’s robust financials, projecting steady earnings growth and strong cash flow generation. The firm anticipates significant FCF accumulation and margin expansion, making TBO an attractive investment opportunity in the travel industry.



Read more at Mint: TBO Tek stock jumps 11% to hit a new all-time high after Goldman Sachs initiates coverage with a ‘buy’ rating