Corporate Travel Management Ltd
CTD: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$78.00 | Rjth | Xqpfrwwn |
Corporate Travel Earnings: High Cost of Doing Good as UK Contract Mishap Dents Earnings
We cut our fair value estimate on Corporate Travel by 9% to AUD 20.50 per share. The reduction is all due to a permanent rebasing of forecast contribution from the UK Bridging contract. Just six months after being "awarded," the humanitarian and crisis travel logistics project is now set to deliver a paltry annual EBITDA of AUD 5 million. This is a huge drop from our prior forecast of AUD 23 million and a far cry from management's AUD 30 million expectation.