Australia's Flight Centre Travel hits 8-month peak as Jefferies sees upside from rival's woes

Flight Centre Travel

01/12/2025 01:08

Updates

** Shares of Flight Centre Travel FLT.AX rise as much as 4.2% to A$14.1, their highest since March 28

** Jefferies expects FLT to gain modestly from turbulence at rival Corporate Travel Management's CTD.AX business

** Brokerage maintains "Buy" rating at a price target of A$13.30

** CTD on Friday, flagged up to 77.6 million pounds ($102.71 million) in revenue restatements across last three years after a forensic review; co also withdrew FY25 earnings forecast

** Brokerage says CTD's issues, linked to customer refunds and contractual uncertainty, go beyond accounting and could prompt client churn

** Jefferies outlines four tailwinds for FLT: potential account switching, CTD's weaker competitiveness in tenders, management distraction, and reduced investor options in the travel sector as CTD faces reputational risk

** FLT stock has fallen 16% YTD, including the day's moves

($1 = 0.7555 pounds)

 (Reporting by Roshan Thomas and Nikita Maria Jino in Bengaluru; Editing by Edmund Klamann)

 ((Roshan.Thomas@thomsonreuters.com;))