RateGain Travel Tech: Why analysts are bullish on this stock

The travel and hotel software company reported revenue and EBITDA growth of 21% and 31.7% year-on-year respectively in the June quarter led by strong performance of DaaS (Data as a Service) and MarTech (Marketing Technology) segments. However, it missed analysts’ estimates due to softness in the distribution segment, slow deal closures and demand challenges in North America. Both revenue and EBITDA fell short of Reuters-Refinitiv estimates by 1.3% and 6.4% respectively.

While the distribution segment registered a muted growth of 3.1% year-on-year, DaaS and MarTech segments registered 17.7% and 33% growth on a year-on-year basis. New client additions aided the former, and paid digital marketing supported the latter.

The company…