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Highlights

  • CTD shares reversed early gains to close 1.3% lower, despite intraday rise of 1%.

  • UBS upgraded the stock to “Buy” citing business momentum, but flagged soft near-term macro outlook.

  • Price target trimmed to AU$13.55 from AU$17.60; near-term earnings forecasts cut by 20%.

Shares of Corporate Travel Management Ltd (ASX:CTD) slipped 1.3% on Tuesday, reversing early session gains, after a cautious update from UBS tempered optimism around the company’s long-term growth potential.

Earlier in the day, CTD stock had climbed by as much as 1% before market sentiment soured, likely weighed by macroeconomic concerns highlighted in UBS’s latest research note.

UBS Flags Mixed Outlook

While UBS upgraded Corporate Travel Management to a “Buy” rating from “Neutral”, the investment bank maintained a guarded view on the near-term. It cited ongoing uncertainty in global travel trends and a likely soft macroeconomic backdrop heading into FY26 as potential headwinds.

Despite these challenges, UBS noted a compelling long-term story, particularly highlighting CTD’s accelerated new business momentum. Transaction value (TTV) associated with recent wins has jumped from AU$1 billion to AU$1.6 billion annually in FY25.

However, UBS slashed its earnings forecasts for FY25 and FY26 by 20%, reflecting the macro drag and timing-related factors in translating TTV into revenue. The broker also lowered its 12-month price target to AU$13.55 from AU$17.60.

Investors Weigh Long-Term Upside vs Near-Term Risks

Corporate Travel Management, which operates across Australia, Europe, North America, and Asia, has faced mounting investor pressure this year, with its shares down 13.3% year-to-date.