TBO Tek shares rose nearly 3% to Rs 1,733 on Thursday after Nuvama initiated coverage with a Buy rating. The brokerage set a target price of Rs 2,200 for the travel tech firm. Nuvama expects strong growth, driven by international expansion and a higher contribution from the hotel business segment.

Shares of travel tech firm TBO Tek rose nearly 3% on Thursday to Rs 1,733 after brokerage Nuvama initiated coverage with a Buy rating and a Rs 2,200 target price. The brokerage expects a 35% earnings CAGR over FY27-FY29E, driven by international expansion and hotel business growth.

Shares of TBO Tek gained as much as 2.84% during Thursday's trading session, touching an intraday high of Rs 1,733. Brokerage firm Nuvama has initiated coverage on the travel technology company with a 'Buy' rating and a target price of Rs 2,200.

According to an ET Now report citing a Nuvama research note, the brokerage expects TBO Tek to deliver strong growth over the coming years, supported by international expansion, operating leverage and an increasing contribution from the hotel segment.

Nuvama on TBO TekNuvama has initiated coverage on TBO Tek with a 'Buy' rating and a target price of Rs 2,200. The brokerage expects the company to post a 19% revenue CAGR and 35% earnings CAGR during FY27-FY29E.

The growth outlook, according to Nuvama, is expected to be driven by international expansion, operating leverage and higher contribution from the hotel business.

The brokerage also highlighted TBO Tek's strong negative working capital profile and healthy return ratios, which it believes provide further support to its investment thesis.

TBO Tek Share Price, Valuation and Technical IndicatorsTBO Tek is currently trading at a market capitalisation of around Rs 18,309 crore, while the stock's 52-week high stands at Rs 1,764.80.

On the valuation front, TBO Tek's price-to-earnings (P/E) ratio is 69.11, while its price-to-book (P/B) ratio stands at 11.8.

According to technical indicators on Trendlyne, TBO Tek's 14-day Relative Strength Index (RSI) is 51.7. An RSI reading below 30 is generally considered to indicate an oversold zone, while a reading above 70 is considered overbought. The stock is currently trading above all 8 of the 8 Simple Moving Averages (SMAs) tracked by the platform.