Shares in Corporate Travel Management, a travel services provider, have staged a significant rebound following a tumultuous period. For over a year, the company’s stock was suspended from trading on the ASX due to an accounting scandal in its UK and European businesses, prompting many fund managers to slash the value of their holdings. After finally lodging its audited full-year accounts, shares resumed trading last month, initially plummeting 85 per cent to $2.32 on their first day back on the sharemarket. However, the stock has since recovered, climbing approximately 58 per cent to $3.66.
This turnaround has seen Corporate Travel Management become a major contributor to some portfolios, notably Bennelong Australian Equity Partners. Despite writing down its position to zero during the suspension, Bennelong held onto its stake and has since seen that decision pay off, with CTM being a top contributor to its Australian Equities Fund in the September quarter. Key catalysts for the recent surge include the International Air Transport Association (IATA) restoring previous payment cycles and returning $65 million held as a security guarantee. This move is expected to boost CTM’s working capital by around $30 million, a development Morgan Stanley noted as reducing the risk of requiring additional equity. Morgan Stanley subsequently lifted its share price target to $3.20.
The positive momentum has drawn fresh interest from investors. Brisbane-based DNR Capital recently crossed the 5 per cent threshold to become a substantial shareholder, while others like ECP Asset Management exited their positions as soon as trading resumed, impacting their fund performance. Though some hedge funds had significantly reduced their short interest in CTM to 1.4 per cent by September, it has crept back above 3 per cent this month, indicating continued mixed sentiment. Despite the recent gains, CTM shares remain 77 per cent below their August 2025 trading halt level of $16.07, when billing issues first surfaced.
