Downgrade Announcement#
Evercore ISI has lowered its rating for Global Business Travel Group Inc. (NYSE:GBTG) from "Outperform" to "In Line". This change comes alongside a price target set at $9.50 per share.
Acquisition Details#
On the same day, American Express Global Business Travel revealed it would be acquired by Long Lake Partners for $9.50 per share in cash. This acquisition price represents a significant 60% premium over the stock's closing price on the previous Friday. The total value of the transaction is approximately $6.3 billion. Following the announcement, the stock price surged to $9.33, nearing its 52-week high of $8.64.
Financial Metrics#
The acquisition implies a valuation of 10.2 times and 8.6 times the expected earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2026 and 2027, respectively. In comparison, the average valuation for similar companies has been lower, at 7.2 times and 6.2 times year-to-date, and an average of 8.2 times over the past three years.
Recent Performance and Analyst Ratings#
Global Business Travel also pre-announced its first-quarter 2026 results, reporting an adjusted EBITDA of $150 million, which aligns with previous guidance. The company's revenue increased by 35% year-over-year, surpassing earlier expectations. In light of these developments, various analysts have updated their ratings: BofA Securities initiated coverage with a neutral rating and a price target of $6.50, while UBS adjusted its target from $11 to $10, maintaining a Buy rating. Morgan Stanley lowered its target from $8.00 to $7.00 but kept an Equalweight rating, noting that the company’s revenue growth exceeded prior estimates.