The All Ordinaries Index (ASX: XAO) is sliding 0.28% today but this ASX All Ords travel share is bucking the trend.
The Corporate Travel Management (ASX: CTD) share price is soaring 10.42% today to $20.87.
Let's take a look at what is going on with this ASX All Ords travel share.
What's going on?
Corporate Travel Management has won a major contract with the UK government.
The travel company advised the market it has secured the Bridging Accommodation and Travel Services contract from the UK Home Office.
This contract is estimated to be worth nearly £1.6 billion in total transaction volume (TTV) over two years, which is about $2.99 billion Australian dollars.
Corporate Travel Management said the contract will have a "significant impact" on further growth in the European region in FY24 and beyond.
Commenting on the news, the company said:
This work involves highly complex services and logistic support that will be delivered by an already established dedicated team within CTM that has both the experience and specialised knowledge to support this work.
In the first half of FY23, Corporate Travel Management reported a record TTV of $4.199 billion.
The company delivered an underlying EBITDA of $51.3 million and an unfranked interim dividend of 6 cents per share.
Corporate Travel Management said at the time of releasing these results it is expecting a record second-half EBITDA result.
The team at Morgans recently placed an "add" rating on Corporate Travel Management shares with a $21.90 price target. Analysts said "CTD remains a key pick for the travel sector", adding:
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.
Corporate Travel Management share price snapshot
The Corporate Travel Management share price has slid 12% in the last year. However, it has surged 41.55% year to date.
This ASX All Ords share has a market capitalisation of more than $3 billion based on the latest share price.
