Flight Centre reverses gains; Morningstar says market pessimism unwarranted

Flight Centre Travel

13/03/2025 24:35

** Shares of Australia's Flight Centre Travel Group FLT.AX dip 0.6% after having gained 1.5% earlier in the day

** FLT stock trading more than 30% below Morningstar's assessments owing to poor December-half earnings and macroeconomic concerns

** Brokerage says market's pessimism around the stock is unwarranted as FLT has strong fundamentals in terms of earnings, margins and balance sheet

** Attributes most of the current depressed multiples to concerns on travel demand due to heightened global economic and geopolitical concerns

** Morningstar maintains fiscal 2025 underlying profit before tax forecast of A$364 mln ($230.38 mln)

** We see value in no-moat-rated Flight Centre shares at current levels — brokerage

** Stock down 17.6% YTD

($1 = 1.5800 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)

 ((Rishav.Chatterjee@thomsonreuters.com))