Macquarie has updated its guidance on Corporate Travel Management Ltd (ASX: CTD).
The company is a provider of travel solutions spanning corporate, events, leisure, loyalty and wholesale travel across Australia and New Zealand, North America, Asia and Europe.
At the time of writing the share price has fallen 21.95% over the last 12 months.
It is currently trading at $11.70 apiece and Macquarie has an updated 12-month target of $13.07.
This still indicates an upside of 11.71%.
However the updated target price has fallen significantly from its previous price target in February of $17.48.
What is Macquarie saying about Corporate Travel Management?
In the report released on Monday about Corporate Travel Management shares the broker said:
The operating environment is volatile with low visibility into client activity levels particularly in North America. Until there is more certainty on the outlook, we retain our Neutral recommendation with a range of earnings outcomes possible from here in FY25-26.
The report included a reduced financial forecast for FY25 by 15%.
Specifically, their projected earnings before interest, taxes, depreciation, and amortisation (EBITDA) is now $167 million, down from $197 million.
This lowered forecast assumes that tariff uncertainty will continue throughout FY25, and that there will be no significant improvement in client activity in the months of May and June.
According to Macquarie, outside of Europe the company is experiencing slower-than-expected growth due to economic conditions and tariff issues. They had initially expected 10% revenue growth and 35% EBITDA growth for this region, but now they expect 5% revenue growth and 10% EBITDA growth.
What are other brokers saying?
It seems there are mixed outlooks on the next 12 months for the Corporate Travel Management which largely reflects a sector that's future is foggy thanks to global tariff uncertainty.
In a media release last Friday, the company said:
In rest of World ex Europe (RoW), broad economic and tariff uncertainty in North America and Asia has led to reductions in client activity resulting in slower growth than expected during what is
traditionally the busiest period of the year.
Yesterday, Morgans, retained their add rating on this corporate travel booker's shares with a reduced price target of $16.05.
Earlier this month, Morgan Stanley placed an overweight rating on Corporate Travel Management shares and $18.30 price target on its shares.
However, that was before last Friday's 11% crash on the back of the company's full-year FY 2025 revenue forecast downgrade.
Elsewhere, Bell Potter has a Target Price of $15.30.
