After a strong run for Corporate Travel Management’s share price, Citi downgrades its rating to Neutral from Buy due to a more balanced risk/reward profile.
The analyst anticipates less upside risk for the company’s earnings over the next 12-18 months. Also, it’s estimated that management’s earnings guidance is still materially short of the consensus forecast.
Some future headwinds the broker lists include a higher (lower-margin) domestic mix in total transaction value (TTV), and a slow ramp-up in International capacity. The target falls to $25.49 from $28.05.
Sector: Consumer Services.
Target price is $25.49.Current Price is $24.96. Difference: $0.53 – (brackets indicate current price is over target). If CTD meets the Citi target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).