Morgan Stanley adds Corporate Travel, Life360 to 'key ideas' list
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The news: Shares in Corporate Travel Management and Life260 were boosted after Morgan Stanley added both companies to its 'key ideas' list.
The numbers: Corporate Travel shares were up 6.8% to $14.04 by 12:45pm AEDT. Life360 shares rose 2.2% to $21.67.
The context: Morgan Stanley's analysts said that after several downgrades, investors lack conviction on Corporate Travel, with consensus forecasts behind guidance.
This means earnings expectations "now look realistic", they said, with perceived operational improvements in Australia, New Zealand and North America, aided by supportive trading conditions.
They also forecast sustained growth in the corporate travel industry, ahead of the broader economy.
On Life360, the analysts said that the technology company's user base of around 80 million engaged, affluent users remains underappreciated by the market.
They also pointed to Life360's strong downloaded data during the fourth quarter, better-than-expected third-quarter average monthly revenue, and new hardware integrations as providing upsides on stock.
Morgan Stanley's 'key ideas' highlight key small-cap and mid-cap investment ideas, where it holds a strong earnings conviction.
The source: Morgan Stanley research
