TBO Tek Ltd’s stock saw a 3% surge after global brokerage firm Jefferies reaffirmed its “Buy” rating on the company. However, the target price has been revised down to Rs 1,400. As of 10:16 AM, the shares were trading 3.18% higher at Rs 1,108.00.
In its latest report, Jefferies lowered its earnings per share (EPS) estimates by 5-11%, citing concerns over a potential global economic slowdown and escalating tariff tensions. These factors are expected to impact outbound travel demand, which could affect sector-wide earnings. Despite these challenges, Jefferies believes TBO Tek, with its aggregator platform, is better positioned compared to its peers to navigate the pressures in the travel industry.
The brokerage also highlighted TBO Tek’s current growth strategy, which prioritizes expansion over margins in the short term. This approach could potentially affect the company’s earnings trajectory in the upcoming quarters. However, Jefferies maintains that the long-term outlook for TBO Tek remains promising, driven by the structural growth opportunity in the global travel aggregation sector.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
