The Corporate Travel Management Ltd (ASX: CTD) share price has shot up more than 57% so far in August. For some perspective, during that same time, the S&P/ASX 200 Index (ASX: XJO) gained 3.3%. Like most ASX shares — especially those in the travel and leisure industries — Corporate Travel's shares took a beating during the COVID-19 inspired market rout. From its 20 January high, the company's share price fell 79% through to 19 March.
The Corporate Travel share price has gained a stellar 192% from that low, though the shares remain down 34% year to date.
What does Corporate Travel Management do?
Corporate Travel Management specialises in the provision of travel solutions across corporate, events, leisure, loyalty and wholesale travel.
Businesses engage with Corporate Travel Management to maximise savings, efficiency and compliance. The company is underpinned by leading and innovative technology, which it has leveraged to carve out a major position in the global corporate travel market.
Corporate Travel Management started out in Brisbane in 1994. It listed on the ASX in 2010. Since then, Corporate Travel has experienced tremendous growth on the back of progressive launches into the United States, Asia, and United Kingdom markets. The company generates a majority of its revenues from outside of Australia and continues to leverage technology to drive growth.
Why is Corporate Travel Management's share price soaring in August?
Corporate Travel's share price has likely benefited from investors beginning to look beyond the impacts of coronavirus, realising companies like Corporate Travel may now be trading at longer-term bargains.
The company also received a boost from some positive broker coverage. On 6 August, Morgans upgraded Corporate Travel's shares to a buy, stating the company had enough liquidity to see it through the end of the 2022 financial year. According to the note, the broker set a $12.85 price target, which is certainly looking conservative today. At the time of writing, Corporate Travel is trading at $13.72 per share.
Corporate Travel's share price has continued to gain over the past few days, albeit at a slower pace. That comes despite the company reporting an $8.2 million loss for FY20 on Wednesday, driven by the shuttering of travel markets in March. Forward looking investors are likely focused on the company beating its fourth quarter expectations. Corporate Travel has been aided by the fact many of its clients are deemed essential service providers, and thus are still permitted to travel.
