Shares in Corporate Travel Management and Life360 saw a rise after Morgan Stanley included both companies on its “key ideas” list.
By 12:45pm AEDT, Corporate Travel’s shares had climbed 6.8% to $14.04, while Life360 shares were up 2.2%, reaching $21.67.
Morgan Stanley’s analysts explained that after several downgrades, investor confidence in Corporate Travel had weakened, with consensus earnings forecasts falling behind the company’s guidance. However, they noted that the current earnings expectations “now look realistic.” The analysts highlighted improvements in Corporate Travel’s operations across Australia, New Zealand, and North America, driven by favorable trading conditions. They also projected continued growth in the corporate travel sector, outpacing the broader economy.
Regarding Life360, the analysts pointed out that the company’s user base, which includes around 80 million engaged and affluent users, remains undervalued by the market. They also cited strong data from Life360’s fourth-quarter downloads, better-than-expected third-quarter revenue, and new hardware integrations as positive indicators for the company’s stock.
Morgan Stanley’s “key ideas” list focuses on small- and mid-cap investment opportunities where the firm holds strong earnings conviction.
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