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From Motley F.

Why the Corporate Travel Management Ltd share price is hitting record highs

The Corporate Travel Management Ltd (ASX: CTD) share price is heading into orbit today after brokers lapped up its financial results for the six-month period ending December 31 2016.

Financial news wires are reporting that analysts at respected U.S. investment bank, broker, and research house Morgan Stanley slapped a $22 price target on the stock ,which comes as no surprise given its rocketing growth and strong outlook. Today the stock jumped 7.25% to $18.97 and hit $19.24 earlier in trade – just 1 cent off its record high.

For the most recent period the travel firm reported total revenue up 26% to $150.4 million and EBITDA up 45% to $40.34 million. Earnings per share came in at 22.1 cents as the group continued on its organic and acquisitive growth path.

Further coverage of the results can be found here and it’s important to remember that brokers and markets are forward looking, with the stars potentially aligning for Corporate Travel into FY18 and beyond.

It appears to have two factors in its favour in my opinion. First a pick up in mining and mining services related travel in its core Australia market may help business in 2017, while its other core U.S. market may also see increased company travel as the business environment continues to improve. The bullish outlook was also emphasised by the group’s ebullient founder and CEO on an earnings call last Friday.

It’s also worth nothing that Corporate Travel demand is heavily leveraged to the health of local economies as companies will send staff away a lot more if their underlying businesses are ticking along nicely. While company travel tends to be one of the first things cut back on when times are harder and companies are looking for cost savings.

Given the improving outlook for Corporate Travel’s services in 2017 I’m with the brokers and expect its shares could travel north of $22 in 2017.