The Corporate Travel Management Ltd (ASX: CTD) share price had a very eventful start to the week.
On Monday, the corporate travel specialistâs shares were trading lower for much of the day before flying higher briefly in afternoon trade.
The Corporate Travel Management share price topped out 6.5% higher at $19.25 briefly before ultimately ending the day with a small decline.
Unfortunately, the declines have continued on Tuesday. Its shares are currently down almost 2% to $17.60.
What happened with Corporate Travel Management shares?
Investors were fighting to get hold of Corporate Travel Management shares in response to a big announcement.
According to the release, the company has been awarded the Travel Management Services contract for the Whole of Australian Government (WoAG) for an initial four-year term with a further three years of extension options.
The contract will start on 1 July, which means the company will get a full-year benefit from it in FY 2024. And what a benefit it will be! Management estimates that the contract will contribute approximately 20% of its revenue and 30% of the total transaction value (TTV) in the ANZ region in FY 2024.
Should you buy?
A couple of brokers have responded positively to the news.
For example, this morning, Morgan Stanley responded by retaining its overweight rating and lofty $28.60 price target on the company’s shares.
This price target implies a potential upside of approximately 62% for Corporate Travel Management shares over the next 12 months.
Morgan Stanley believes the contract win means the company is well-positioned to achieve its ahead-of-consensus earnings estimates in the coming years.
Elsewhere, UBS has responded by retaining its buy rating and $25.95 price target on its shares. This suggests a potential upside of just over 47% for investors from current levels.
All in all, these brokers appear to see the company as a great option for investors looking for travel sector exposure.
