The Corporate Travel Management Ltd (ASX: CTD) share price has gone from being the worst performer on the ASX 200 on Wednesday, to one of the best performers on the index on Thursday.
In morning trade the corporate travel specialist's shares were up as much as 8.5% at one stage.
At the time of writing its shares are almost 7% higher at $21.44.
Why are its shares bouncing back today?
With most in the market satisfied with the company's rebuttal to VGI Partners' short seller report, bargain hunters appear to be snapping up shares this morning.
Underpinning the buying has been a broker note out of Morgan Stanley.
According to the note, the broker has retained its overweight rating and $35.00 price target on Corporate Travel Management's shares.
While the broker felt that management could have improved on certain areas of its response, it doesn't believe there is a reason to be concerned. Nor does the broker believe that growth expectations have been impacted.
It also appears to have been pleased to see management confirm that it is trading at the high end of its guidance range so far in FY 2019.
Should you invest?
Based on management's guidance, I estimate that its shares are changing hands at approximately 22x forward earnings. I think this is great value given its solid growth prospects.
However, there is always a risk that VGI Partners could come back with a response of its own in the coming days and put pressure on its share price again.
In light of this, it might be better to wait for things to blow over before considering an investment.
In the meantime, I think fellow travel shares Helloworld Travel Ltd (ASX: HLO) and Webjet Limited (ASX: WEB) are trading at attractive prices today.
