Upcoming AGM

A note out by Morgan Stanley...

Corporate Travel Management (CTD)

• Rating and target price: Overweight and $28.60

• "Ahead of Aug/Sep results, we highlight key small/mid-cap ideas where we have conviction into earnings and on out-/ underperformance into FY24. Key Idea #1 – OW CTD."

• “While travel peers were undertaking emergency capital raising to survive, CTD was widening its scale advantage at depressed multiples.”

• “If CTD delivers on FY24 guidance of A$265m EBITDA it implies c.10x EV/EBITDA and 16.5x FY24e P/E (c.40% discount to LT average). So meeting FY24 guidance is not priced in.”