Citi has downgraded its rating on Corporate Travel Management (CTM) to “neutral” from “buy,” while slightly increasing the price target to $16.10 from $15.65. Corporate Travel Management provides travel management solutions to businesses and organisations. The company offers services such as booking flights, accommodation, and ground transportation, as well as managing travel policies and expenses.
The downgrade reflects ongoing uncertainty surrounding Corporate Travel, whose shares have been suspended from trading since late August due to identified accounting issues. According to Citi analyst Samuel Seow, any necessary restatements are expected to increase prior year earnings while reducing fiscal year 2025 earnings.
Despite the current challenges, Citi maintains a degree of optimism regarding Corporate Travel’s future prospects. This positive outlook is largely driven by a significant five-year contract secured in Britain, set to commence in fiscal year 2026. The analyst believes this contract will contribute positively to the company’s long-term performance, despite the short-term uncertainty posed by the accounting reviews.
