With the travel market rebounding strongly from the pandemic, many investors may be keen to add some travel and tourism exposure their portfolio.
If that's something that you want to do, then it could be worth looking at the ASX 200 travel shares that Morgans believes are the best ones to buy right now. Here's what it is saying:
Corporate Travel Management Ltd (ASX: CTD)
The first ASX 200 travel share to consider is this corporate travel booker.
Morgans has named it has a key pick in the travel sector and believes it is well-placed for growth in a post-pandemic world. Particularly given recent acquisitions and structural cost savings.
The broker also sees plenty of value in the Corporate Travel Management share price with its add rating and $25.65 price target. The broker explained:
Taking a longer term view, CTD remains as a key pick for the travel sector. We see substantial upside in its share price as the company recovers from the COVID affected travel downturn. In fact, CTD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn. The company has also won a lot of new business, implemented structural cost out opportunities and continued to develop its market leading technology offering which means that it will require less staff in the future. CTD is well managed and has a strong balance sheet (no debt).
Qantas Airways Limited (ASX: QAN)
Another ASX 200 travel share that could be in the buy zone is Qantas. In fact, the broker has named it as its top pick in the sector with an add rating and $8.50 price target.
Morgans believes Qantas is well-placed in the current environment and sees a lot of value in its shares at the current level. It commented:
QAN is now our preferred pick out of our travel stocks under coverage given it has the most near-term earnings momentum. Looking across travel companies globally, airlines are now in the sweet spot given demand is massively exceeding supply. QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings, a much stronger balance sheet, a better domestic market position, a higher returning International business and more diversification (stronger Loyalty/Freight earnings).
