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Corporate Travel Management Ltd shares higher on broker upgrade

In morning trade the Corporate Travel Management Ltd (ASX: CTD) share price has climbed 2% higher to $19.91.

This gain will come as a relief to shareholders who prior to today had seen its shares tumble almost 20% lower since peaking at $24.25 at the end of October.

Why are its shares higher today?

With no meaningful news out of the company since its annual general meeting in October, today’s gain is likely to be attributable to a positive broker note out of Morgans.

According to the note, the broker has upgraded the travel company’s shares to an add (buy) rating from neutral with a $23.00 price target.

This price target implies potential upside of almost 18% based on its last close price.

Analysts at Morgans have made the move following the aforementioned share price weakness over the last five weeks.

The broker likes Corporate Travel Management due to its belief that it can deliver double-digit earnings growth over the next couple of years and has plenty of opportunities to increase its market share in a highly fragmented global corporate travel market.

Furthermore, Morgans expects tax cuts in the United States and UK could provide an extra boost to its earnings growth.

Should you invest?

I would have to agree with Morgans on this one. I think the recent sell-off of Corporate Travel Management’s shares has presented investors with a great buying opportunity.

In light of this, I would suggest investors consider it ahead of industry peers Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB).

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Corporate Travel Management Limited and Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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