CTD – Morgan Stanley rates the stock as Overweight

Corporate Travel Management intends to acquire Helloworld Travel’s ((HLO)) A&NZ corporate operations for -$175m ($100m cash and $75m scrip). The analyst feels the company is now reaping the reward of resilience during covid and enjoys a strong balance sheet.

The fact Helloworld Travel is taking $75m of equity in Corporate Travel Management indicates to Morgan Stanley confidence in the combined business, synergy targets and the prospects for a rebound.

The broker says a normalisation of conditions and further opportunistic M&A should be reflected in a higher trading multiple.

Overweight rating is maintained. Target price rises to $24 from $23.50. Industry view: In line.

Sector: Consumer Services.


Target price is $24.00.Current Price is $22.29. Difference: $1.71 – (brackets indicate current price is over target). If CTD meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).



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