Why is the Corporate Travel stock price lagging the ASX 200 today?

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the Business Travel Management Ltd (ASX:CTD) The stock price is in the red today despite the company’s update on its post-COVID recovery.

This ASX travel share is currently trading at $25.15, a decline of 2.52%. For perspective, the S&P/ASX 200 Index (ASX:XJO) is slipping just 0.11% today.

Let’s take a look at what Corporate Travel reported.

Corporate Travel expects improved revenue

Corporate Travel’s projected monthly revenue could exceed calendar year 19 (CY19) levels by the fourth quarter of this year. The company is targeting $265 million in EBITDA when the travel industry fully recovers from COVID-19.

In a presentation at the Macquarie conference in Sydney, the company noted that it had made “transformational acquisitions” during COVID-19 and had no debt.

Corporate Travel said the third quarter got off to a slow start due to the COVID-19 Omicron variant, but March revenue was a record high. Since March 2021, the company has recorded underlying EBITDA earnings.

Corporate Travel said the Australian and New Zealand business had seen a slow international recovery amid supply constraints. This despite strong travel demand. State government accounts are below average due to people working from home. However, a return to work is underway.

Meanwhile, in North America, the top 25 accounts are trading below average but recovering in April. In the European region, a return to work is underway, but the UK government BAU accounts are less than 50% recovered.

An expert recently predicted that business travel could boost income post-COVID. As my colleague Foolish Tony reported, Sage Capital portfolio manager Kelli Meagher said the company raised money to make “some pretty smart acquisitions,” setting them up for post-COVID growth.

We like longer-term business travel simply because it’s now in a much better position to gain market share.

We don’t even need to see a full rebound in business travel to [pre-COVID] levels… for Corporate Travel to increase its revenues, because it’s a game of market share and margin.

In early April, Corporate Travel finalized the acquisition of Helloworld Travel Ltd (ASX: HLO) Business travel and entertainment activities.

Corporate Travel Share Price Summary

Corporate Travel’s share price is up nearly 40% in the past year and more than 14% year-to-date.

For perspective, reference S&P/ASX 200 Index (ASX:XJO) has lost 2% over the past year.

Corporate Travel has a market capitalization of approximately $3.7 billion based on the current share price.