Investment Rating - The investment rating for Corporate Travel Management Limited (CTD.AX) is Equal-weight [2][11]. Price Target - The price target has been updated to A$12.50 from A$11.80 [1][5]. Core Views - The report indicates that after a period of elevated uncertainty, activity in the corporate travel sector has returned closer to business as usual, leading to low-double-digit EPS upgrades for FY25e-27e, although still below consensus [1][11]. - The report highlights that the corporate travel industry is expected to show resilience despite slowing growth, with CTD emerging as a more competitively advantaged business post-COVID-19 [11][20]. - The report notes that the company has improved its competitive position and is well-positioned to gain market share both organically and through acquisitions [11][20]. Financial Estimates - The fiscal year ending estimates for EPS are as follows: FY24 at A$0.80, FY25e at A$0.60, FY26e at A$0.70, and FY27e at A$0.87 [2][19]. - Total Transaction Value (TTV) estimates are projected at A$714 million for FY24 and FY25e, increasing to A$778 million for FY26e and A$843 million for FY27e [15][19]. Valuation Metrics - The valuation metrics include a P/E ratio of 15x for FY26e EPS, which is below the 10-year average of 28x, and an EV/EBITDA of 9x for FY26e EBITDA, also below the long-term average [5][11]. - The report uses a DCF model with a WACC of 11.8% and a terminal growth rate of 3.5% [5]. Market Dynamics - The report emphasizes that the corporate travel sector is expected to rebound, driven by ROI-driven dynamics and market share gains, particularly in the Asia segment [9][10]. - The report also notes that the industry consolidation favors scale players, which benefits CTD [11][20].