Navan (NAVN) is likely to post a fiscal Q2 revenue beat on client wins, higher engagement from AI enhancements, and a robust corporate travel backdrop, Oppenheimer said in a Thursday research report.
The brokerage said integrating with Hilton's (HLT) central reservation system should provide better merchandising to boost conversion while benefiting usage yields. The company is due to report fiscal Q2 results on Sept. 9.
Oppenheimer said the company's beat and raise cadence is likely to continue as it expects upside on robust business momentum, seasonality, and airfare tailwinds from the FIFA World Cup.
Investor sentiment is shifting to positive on tangible AI proof points, as Navan is growing faster relative to the corporate travel industry, where the underlying technology and servicing are inherently complex, according to the note.
Oppenheimer reiterated its outperform rating on the stock and boosted its price target to $35 from $30.
Price: $29.85, Change: $+0.52, Percent Change: +1.77%