The Corporate Travel Management Ltd (ASX: CTD) share price went on a bit of rollercoaster ride in 2018.
Last year the corporate travel specialist's shares traded as high as $33.87 and a low as $19.20.
Why have Corporate Travel Management's shares been so volatile?
The main catalyst for this volatility has been a short seller report in the final quarter of last year.
Its shares came under significant selling pressure after VGI Partners released a 176-page report to clients which identified 20 concerns in relation to the company's operations.
Although the company provided a comprehensive rebuttal to these claims and even drafted in Ernst & Young to provide additional support, investors have continued to stay clear of its shares.
As a result, Corporate Travel Management's shares currently sit close to the low end of their 12-month range at $22.93.
This is over 32% lower than its 52-week high and at a level that one leading broker believes is attractive.
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $27.00 price target on the company's shares. This price target implies potential upside of approximately 18% over the next 12 months.
Despite all the drama, Morgan Stanley appears confident that the company will deliver on its guidance in FY 2019.
It estimates that the company will achieve earnings per share of 98 cents, which will be a year on year increase of approximately 36%.
Looking to FY 2020, the broker expects its solid earnings growth to continue and has pencilled in earnings per share of $1.17, representing year on year growth of just over 19%.
Based on its forecast, Corporate Travel Management's shares are currently changing hands at 23x FY 2019 earnings and 19.5x FY 2020 earnings.
Should you invest?
While I would probably choose Helloworld Travel Ltd (ASX: HLO) and Webjet Limited (ASX: WEB) ahead of it, I would have to agree with Morgan Stanley that Corporate Travel Management's shares are attractively priced now given its current growth profile.
One risk that is worth considering, though, is that VGI Partners still appears to be shorting the company. This could be a sign that the short attack is not over just yet and could reignite during earnings season.
