Navan (NAVN) is taking market share from legacy travel management companies and incumbent travel and expense platforms with its AI-led integrated platform, BofA Securities said in a Tuesday note.

The brokerage said that Navan's digital offering and AI-first architecture stand out compared with traditional corporate travel companies. BofA said that Navan's revenue growth of over 30% far outpaces the broader industry, which is growing at mid-single-digit rates.

Analysts said profitability is improving, with operating leverage driven by AI-led servicing, though the company is expected to continue investing in sales, marketing and research and development.

BofA also said Navan faces risks from technology companies such as Alphabet's (GOOG) Google and OpenAI automating elements of trip search and booking.

Analysts initiated coverage on the stock with a buy rating and $17 price target.

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