Goldman Sachs says these ASX travel shares are buys

If you’re wanting to invest in the travel sector, then you may want to check out the two ASX travel shares listed below.

Both have been named as buys in the sector by Goldman Sachs and tipped to climb meaningfully higher from current levels. Here’s what the broker is saying:

Corporate Travel Management Ltd (ASX: CTD)

Goldman believes that this corporate travel specialist’s shares are in the buy zone at the current level. According to a recent note, the broker has a buy rating and $20.20 price target on its shares.

Its analysts have been pleased with Corporate Travel Management’s recovery from the pandemic and expects the positive form to continue. It commented:

Overall, momentum continues to be encouraging, albeit with regional nuances in the short term. CTD offers strong growth and margin accretion opportunities with improving scale and a consolidating market while maintaining a strong balance sheet.

Webjet Limited (ASX: WEB)

Another ASX travel share that Goldman Sachs rates highly is this online travel agent. In fact, the broker is such a big fan, it has put Webjet on its highly coveted conviction list. The broker has a conviction buy rating and $6.50 price target on its shares.

Goldman is very bullish on the company’s outlook thanks partly to its WebBeds (Bedbanks) business. It explained:

WEB is a structural beneficiary of the recovery from COVID with favorable exposure to the growing online channel and, more importantly, a strong positioning and improving scale in the niche Bedbanks segment. WEB has also demonstrated strong cash generation as the market recovers and valuation continues to be impacted by macro concerns. We expect the valuation should start decoupling to reflect the fundamental strength of the company as opposed to being in line with other travel intermediaries in the short term.

The post Goldman Sachs says these ASX travel shares are buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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