TBO Tek Shares Jump 8% As Jefferies Hikes Target Price After THIS Update
Jefferies' recent note on TBO Tek suggests the Classic Vacations acquisition is a part of the company's strong roll up strategy and could help the company expand its footprint in North America.
Shares of TBO Tek Ltd. continued their upward momentum on Monday's trade, reaching an intraday high of Rs 1,687, which accounts for a gain of more than 8%. TBO Tek's rally on Monday comes on the back of multiple positives, including a key acquisition of US-based company Classic Vacations, which was followed by a bullish note from Jefferies.
TBO Tek acquired Classic Vacations on Sept. 3 for $125 million, which kick-started a rally that has witnessed the stock gaining as much as 20% in just a few days. Jefferies' recent note on TBO Tek suggests the Classic Vacations acquisition is a part of the company's strong roll up strategy and could help the company expand its footprint in North America.
Classic Vacations is a leading premium B2B & B2C luxury travel company in the US, with a network of 10,000 travel advisors. Jefferies believes the acquisition is going to be central to TBO Tek's growth plans, especially when it comes to strengthening their presence in the premium outbound market.
It must also be noted that recent GST changes may positively impact TBO Tek's revenue. Although the company considers GST as a pass-through tax, the consumption and travel boost it could bring to the table could reflect positively on TBO Tek's revenue.
TBO Tek is currently trading with a Relative Strength Index of 65, which signals that the asset is not yet overbought. A total of eight analysts are tracking the company, with seven having a 'buy' rating. Only one analyst has recommended 'hold', while the company has no 'sell' call, as per data compiled by Bloomberg.
