Jefferies downgrades Corporate Travel stock, citing valuation concerns

Published 17/01/2025, 09:08
Jefferies downgrades Corporate Travel stock, citing valuation concerns

On Friday, Jefferies adjusted its stance on Corporate Travel Management (CTD:AU) (OTC: CTMLF), downgrading the stock from a Buy to a Hold rating, while maintaining a price target of AUD14.20. The shift in rating comes as the company has surpassed the set price target, prompting the research firm to revise its recommendation.

The North American and Australia/New Zealand regions of Corporate Travel Management have been performing strongly, according to Jefferies. The firm also noted that the area which had previously been the source of downgrades, referred to as "Project Work," is now showing more potential for upside by fiscal year 2026.

In the broader context of the travel industry, Jefferies pointed to Delta Air Lines' (NYSE:DAL) fourth-quarter 2024 earnings report, released on January 13, as a positive indicator for business travel trends heading into 2025. This sector performance is particularly relevant for Corporate Travel Management's operations.

Despite the downgrade to a Hold status, Jefferies has not altered its forecasts for Corporate Travel Management. The decision to maintain the price target suggests that the firm's expectations for the company's financial performance remain unchanged.

Corporate Travel Management's stock has reached a point where it has exceeded the price target of AUD14.20 set by Jefferies. This milestone is a key factor in the research firm's downgrade, as the stock's current valuation aligns with their target.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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