Corporate Travel Management stock rating downgraded by Jefferies on travel slowdown

Published 01/07/2025, 10:26
Corporate Travel Management stock rating downgraded by Jefferies on travel slowdown

Investing.com - Jefferies downgraded Corporate Travel Management (ASX:CTD) (OTC:CTMLF) from Buy to Hold while maintaining a price target of AUD14.20, citing slowdowns in travel data across key markets.

The downgrade comes as travel data shows declining activity in both hotels and air traffic throughout the United States and Europe, according to Jefferies. The firm attributed this slowdown to ongoing geopolitical tensions and weak consumer and business confidence.

Jefferies trimmed its earnings per share forecasts for Corporate Travel Management by 6% for fiscal years 2026-2027, reflecting the current market conditions affecting the travel sector.

Despite the downgrade, Jefferies noted potential improvement on the horizon, suggesting that the continuing interest rate cut cycle over the next year could potentially lead to increased business travel volumes toward the end of calendar year 2025.

The rating change to Hold was triggered as Corporate Travel Management’s stock reached Jefferies’ price target of AUD14.20, limiting the upside potential in the near term according to the firm’s analysis.

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