Corporate Travel Management Ltd

Positive sentiments:Corporate Travel Management Ltd.’s (ASX: CTD) stock rose 4.05% on December 06, 2017, owing to gain in positive sentiments for the stock in the market. CTD is now expected to deliver double-digit earnings growth over the next couple of years and has many opportunities to have an enhanced market share in a highly fragmented global corporate travel sector. The stock might also find support from tax cuts in the United States and UK with respect to its earnings growth.
 
CTD in FY18 expects underlying EBITDA in the range of $120 -125m, which is a 22.0% -27.5% growth on prior corresponding period. The group’s efforts in the past one year resulted in translation of revenue to EBITDA at the back of growing scale, technology and integrated automation. The underlying EBITDA for FY17 was up 43% to $98.6m, and 51% to $104.0m on a constant currency basis.
 
CTD stock has fallen 8.23% in three months as on December 05, 2017 owing to volatility.Further, CTD’s Managing Director, Mr. Jamie Pherous, lately sold 1.165 million shares at $23.00 per share, and this posed some pressure on the stock. CTD now seems to be re-gaining traction based on growing opportunities and positive sentiments.
 
Given the scenario, we believe it will be prudent to “Hold” the stock at the current price of $20.30
 

Global Footprint (Source: Company Reports)

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