Global Business Travel Group (GBTG) faces slower growth, rising competition, and margin pressure despite the CWT deal, BofA Securities said in a note Tuesday.

The firm said that the company is one of the largest global corporate travel managers, however, its reliance on live agents, despite the gradual adoption of artificial intelligence and legacy booking systems, may limit near-term upside.

The 2025 acquisition of CWT increased revenue by about 30%, however, CWT's lower growth and margins, along with integration costs, are expected to weigh on profitability, BofA said, adding that despite management targeting $155 million in synergies, near-term margin improvement is likely limited, and revenue growth is set to be around 4% in 2027, below the industry's estimate of 6%.

The firm said Global Business Travel Group's margins might be "too optimistic" as management is aiming for a 30% long-term earnings before interest, taxes, depreciation, and amortization margin, driven by gross margin expansion of 150 to 200 basis points per year from AI automation over the next five years.

The firm said margins are expected to fall to 19.3% in 2026 from 19.6% in 2025, then recover to 20.8% in 2027 and 21.7% in 2028. This is slightly below market estimates of 19.5%, 21.1%, and 21.8%, respectively.

BofA initiated Global Business Travel Group with a neutral rating and a price target of $6.50. Shares of the company fell past 4% in the session.

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