Corporate Travel Management’s recovery is ahead of the market, with Macquarie noting the company is expecting fourth quarter average monthly revenue to exceed pre-covid levels and build momentum heading into the next financial year.
Activity in Europe, North America and Australia/New Zealand were 86%, 70% and 71% of pre-covid levels respectively, compared to peer AMEX Global Business Travel’s reported comparable activity levels of 51%, 56% and 57%.
Macquarie notes the company remains well placed for recovery in corporate travel, but the broker expects it will reach full recovery faster than those with larger corporate customer exposure given its customer mix.
The Outperform rating is retained and the target price decreases to $25.80 from $26.70.
Sector: Consumer Services.
Target price is $25.80.Current Price is $21.32. Difference: $4.48 – (brackets indicate current price is over target). If CTD meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).