Trade wars, Brexit and the Hong Kong protests made for a particularly tough first half for Corporate Travel Management, but there are signs of life returning in the second half. The company has reiterated FY guidance and Morgans assumes modest first-half earnings growth followed by double-digit growth in the second half as macro headwinds gradually ease.
The broker retains Add and a $23.40 target but acknowledges that despite a discount to other growth stocks, Corporate Travel will need to show evidence of a second half comeback before a re-rating is likely.
Sector: Consumer Services.
Target price is $23.40.Current Price is $20.14. Difference: $3.26 – (brackets indicate current price is over target). If CTD meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).