BofA starts HBX with 'buy', sees 91% upside potential

Web Travel

24/03/2025 09:58

** BofA starts coverage on Spanish travel technology company HBX Group HBX.MC with "buy" rating, predicting a 91% upside potential

** The broker sees HBX's revenues outpacing the market at an 8.5% CAGR in 2024-2029

** The bank cites key drivers such as bundling mobility and  experience, with the accommodation offering likely to raise take-rates, as well as the recently launched fintech and insurance services

** Despite similar growth rates, it notes the company trades 18%/49% below key rivals Amadeus AMA.MC and WEB WEB.AX, and adds it sees substantial long-term valuation upside potential as HBX executes its growth plans over time

** It says accommodation accounts for 88% of HBX revenues in hugely fragmented market, where top four competitors (Expedia EXPE.O, TBO TBOT.NS, Web Travel Group, HBX) hold only about a 10% share

** "We expect the market to consolidate toward the large companies, as most small operators are sub-scale and increasingly less competitive as large companies increasingly differentiate with technology," it adds

** It highlights that HBX is expanding into fast-growing areas like car rentals, transfer and experiences, in a market that's expected to grow 13% CAGR in the next few years

 (Reporting by Marta Serafinko in Gdansk; Editing by Amanda Cooper)

 ((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))