This ASX travel share is 'going to take off' after falling 30%

Back your bags.

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ASX travel share Corporate Travel Management Ltd (ASX: CTD) has suffered this year, slipping 28% into the red.

But one top stock picker believes this company is ready to take off. At this year's Sohn conference, Corporate Travel Management (CTD) was a compelling buy.

Zooming in, shares are up nearly 12% in the past month, hitting three-month highs in today's session. Let's take a closer look.

ASX travel share rated a buy

Speaking at the conference, Rikki Bannan of IFM Investors argued that the small-cap sector, where mispriced opportunities are more common, could offer excellent buying potential in 2024.

Despite the turbulence caused by COVID-19, Bannan says the company's balance sheet allowed it to weather the storm without needing additional cash injections, according to The Australian.

Having been a consistent outperformer over most of its life, CTD has missed expectations on three separate occasions over the past 18 months, which has seen expectations rebased by some 40 per cent, an outcome we think is overly negative.

Our analysis suggests CTD can grow its revenue at 3-year earnings of 15%. This is even before we consider the company's ability to deploy its balance sheet through acquisition.

Bannan also noted that Corporate Travel Management stands to benefit from easing airfare costs, which should make corporate travel more affordable and stimulate demand.

Pack your bags, buy your discount fare, and board the train. Because this stock is going to take off.

Not all as rosy

Not all those covering the stock are as bullish on Corporate Travel Management as Bannan. Recently, Morgans downgraded the ASX travel share from a buy to a hold, adjusting its price target from $15.95 to $13.50.

The downgrade was partly due to concerns that travel spending cuts from the UK government, one of Corporate Travel Management's largest clients, could impact its revenue.

Morgans is at odds with the consensus of analyst estimates, who join Bannan in rating the stock a buy, according to CommSec.

Whether or not this ASX travel share will shine is a matter of time, fate, and the company's fundamentals.

Foolish takeout

Investors are turning to this ASX travel player in the corporate travel sector. IFM, like most brokers, sees the stock as a buy over the coming year.

Not all are as bullish, so it's up to the company to execute now.

In the last 12 months, the stock has experienced losses of 26%.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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