Barclays now sees two Fed cuts this year, says jumbo Fed cuts ’very unlikely’
On Thursday, RBC Capital Markets adjusted its outlook on Corporate Travel Management (CTD:AU) (OTC: CTMLF), increasing the price target to AUD17.00 from AUD14.50. The firm maintained a Sector Perform rating on the stock. This revision follows the company’s first-half 2025 results, which surpassed expectations with a 4% EBITDA beat. The results indicated a potential turning point for the company, which had experienced a series of downgrades in fiscal years 2024 and 2025.
The analyst, Wei-Weng Chen, noted that despite a forecasted downgrade for FY25 that had been previously indicated in October 2024, the outcome was less severe than anticipated, with only a 2% decrease. Moreover, Corporate Travel Management’s ambitious targets for FY26, which project a 6% increase over consensus estimates, suggest a renewed optimism about the company’s trajectory.
Looking ahead, Corporate Travel Management aims to double its FY24 earnings per share (EPS) within five years. After a challenging FY25, this goal implies that a compound annual growth rate (CAGR) of approximately 19% would be necessary to achieve this target by FY29. RBC’s analysis is slightly more conservative, forecasting an 11.8% CAGR leading up to FY29, aligning with the company’s FY26 targets.
Chen’s commentary highlights that Corporate Travel Management’s recent performance may mark a significant shift after a period of downward revisions. The firm’s decision to retain the Sector Perform rating indicates a cautious but acknowledging stance on the company’s potential for growth in the coming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.