There are plenty of options for investors to choose from in the travel sector.
Investors could opt for Corporate Travel Management Ltd (ASX: CTD), Flight Centre Travel Group Ltd (ASX: FLT), or Webjet Limited (ASX: WEB), to name just three.
But for the team at Goldman Sachs, one of these ASX 200 travel shares currently stands head and shoulders above the others.
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Which ASX 200 travel share is a top buy?
According to a note out of the investment bank, its analysts have a preference for Corporate Travel Management right now.
Goldman has a buy rating and a $21.60 price target on the corporate travel specialist's shares. This implies a potential upside of over 23% for investors over the next 12 months.
And while the broker sees decent (14%) upside for Flight Centre shares with its price target of $22.50, it only has a neutral rating on them at present.
Finally, it is a similar story for Webjet shares, with the broker holding firm with its neutral rating and a price target of $7.70 offering almost 13% upside for investors.
What did Goldman say?
Goldman Sachs sees Corporate Travel Management as the best ASX 200 travel share to buy right now due to its attractive valuation and strong organic and inorganic growth opportunities in a highly fragmented industry. It explains:
Managed travel is a fragmented industry with the top 5 players only representing 32% market share (as of 2022). We view the increasingly complex travel market as offering opportunities for growth, especially in the SME space and government contracts. CTD holds a strong balance sheet and is well positioned to take advantage of organic and inorganic growth opportunities and recovery remains skewed to North America where we see relatively lower macro risks.
The stock currently trades at an ~10% discount to average historical P/E despite the growth outlook being ahead of historical levels. We expect ongoing data updates on business travel, updates from global corporate peers and key company updates to drive re-rating of the stock.
