TBO Tek Gets Jefferies’ Buy Call As Target Price Raised On Margin Turnaround Hopes

Jefferies has reiterated its Buy rating on TBO Tek Ltd. while hiking the target price to Rs 1,950 from Rs 1,800, following the company’s first analyst meet in Dubai.

The brokerage noted that,

• TBO held its first analyst meet in Dubai with full senior leadership & select global partners.

• The event underscored the sustained relevance of offline agents amid rising luxury & experiential travel demand.

• TBO is scaling AI tools to empower advisors,

• Partners like Emirates/ Hilton value its reach, curated content, & service depth.

• With Key Account Manager investments tapering, margin turnaround is underway.

The brokerage had earlier in September hiked the target price for the company from Rs 1,625 to Rs 1,800 while maintaining a 'buy' call.

Jefferies highlighted the Classic Vacations acquisition as a prime example of the company's strong roll-up strategy. A roll-up merger is when a singular entity, investor or company combines several small, fragmented companies in the same industry and turns them into a larger entity.

Jefferies believed this acquisition is a part of the company's roll-up strategy in incubated markets.

The company is a global travel distribution platforms which works in the travel business for both suppliers and buyers. The company's suppliers include hotels, airlines, cruises, car rentals, transfers, and rail services.

The company's buyers consist of retail and API buyers such as travel agencies, independent travel advisors, and enterprise buyers including tour operators, travel management companies, online travel companies, super-apps, and loyalty apps.

The company provides a digital platform for booking flights, hotels, experiences, cruises, rail, religious travel, and more.

In the case of Classic Vacations, it is a premium B2B & B2C luxury travel company based in the United States, with more than 10,000 travel advisors in the country.