The Corporate Travel Management Ltd (ASX: CTD) share price finished slightly in the red on Tuesday.
The travel company's shares reached an intraday high of $22.66 during afternoon trade — a gain of 2% — before falling back to end the day down 0.23% at $22.17.
Despite today's slip, the Corporate Travel Management share price has gained more than 4% over the past week, helping it claw back some of its losses this month.
What's driving Corporate Travel Management shares higher lately?
Investors have been buying up Corporate Travel Management shares after they dropped by 15% in the past month.
It appears bargain hunters are taking advantage of the share price weakness following the strong volatility encountered.
Earlier this month, Corporate Travel Management delivered a market update revealing revenue is expected to surpass 2019 levels in Q4 2022. This is being underpinned by the company recovering faster than the corporate travel sector in its largest regions.
Furthermore, management is forecasting earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $265 million on the full recovery, up 75% on pre-COVID numbers.
Supporting these gains, Corporate Travel Management is a much larger business following a series of acquisitions during COVID-19. This includes Travel and Transport, Inc. in 2020 and more recently, Helloworld Corporate in 2022.
Is this a buying opportunity?
The good news for investors is that a number of brokers believe the Corporate Travel Management share price is attractively valued.
The team at JPMorgan raised its price target by 2% to $25.00 in early May, which implies an upside of more than 12%.
On the other hand, Macquarie cut its outlook by 3.4% but to a more bullish price of $25.80 apiece. This represents a potential upside of 16% from where it trades today.
It appears both analysts think that there's still significant value in the travel company and that a recovery is inevitable.
Corporate Travel Management share price summary
Since this time last year, Corporate Travel Management shares have travelled 6% higher as the travel sector begins to open up.
When looking at the year to date, its shares have pushed slightly ahead, with a 1% gain.
On valuation grounds, Corporate Travel Management commands a market capitalisation of roughly $3.15 billion.
