The Corporate Travel Management Ltd (ASX: CTD) share price finished slightly in the red on Tuesday.
The travel company’s shares reached an intraday high of $22.66 during afternoon trade — a gain of 2% — before falling back to end the day down 0.23% at $22.17.
Despite today’s slip, the Corporate Travel Management share price has gained more than 4% over the past week, helping it claw back some of its losses this month.
What’s driving Corporate Travel Management shares higher lately?
Investors have been buying up Corporate Travel Management shares after they dropped by 15% in the past month.
It appears bargain hunters are taking advantage of the share price weakness following the strong volatility encountered.
Earlier this month, Corporate Travel Management delivered a market update revealing revenue is expected to surpass 2019 levels in Q4 2022. This is being underpinned by the company recovering faster than the corporate travel sector in its largest regions.
Furthermore, management is forecasting earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $265 million on the full recovery, up 75% on pre-COVID numbers.
Supporting these gains, Corporate Travel Management is a much larger business following a series of acquisitions during COVID-19. This includes Travel and Transport, Inc. in 2020 and more recently, Helloworld Corporate in 2022.
Is this a buying opportunity?
The good news for investors is that a number of brokers believe the Corporate Travel Management share price is attractively valued.
The team at JPMorgan raised its price target by 2% to $25.00 in early May, which implies an upside of more than 12%.
On the other hand, Macquarie cut its outlook by 3.4% but to a more bullish price of $25.80 apiece. This represents a potential upside of 16% from where it trades today.
It appears both analysts think that there’s still significant value in the travel company and that a recovery is inevitable.
Corporate Travel Management share price summary
Since this time last year, Corporate Travel Management shares have travelled 6% higher as the travel sector begins to open up.
When looking at the year to date, its shares have pushed slightly ahead, with a 1% gain.
On valuation grounds, Corporate Travel Management commands a market capitalisation of roughly $3.15 billion.
The post Down 15% in a month, is the Corporate Travel share price a bargain? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Corporate Travel Management right now?
Before you consider Corporate Travel Management, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Corporate Travel Management wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Are investors missing out on these ASX share opportunities?
- Are ASX 200 travel shares already fully valued in May?
- Why AGL, Booktopia, Cleanaway, and Corporate Travel Management shares are dropping
- Why is the Corporate Travel share price lagging the ASX 200 today?
- ASX 200 midday update: Woolworths’ Q3 update, AGL falls on Cannon-Brookes raid
Motley Fool contributor Aaron Teboneras 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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/8Wrlxbs
Leave a Reply