CTD is experiencing a year to forget with its stock having already corrected -34% from its April high although we feel things are starting to improve operationally for the corporate travel business. Revenue more than doubled last year to $389m which was a slight miss as was their net profit of $3m, however, this feels likely to improve and early signs in FY23 show that it already has despite Asia reopening slower than expected/hoped. A lingering issue for corporate travel is reliability, who wants to go to the airport when getting on a flight on time (if at all) is hit & miss when Zoom is now a legitimate alternative?
- We like the risk/reward for CTD below $17 which sounds a familiar story of late.
MM is neutral CTD around $19
Add To Hit List
