J.P. Morgan raises earnings estimates for Australia's Flight Centre Travel

Flight Centre Travel

25/07/2024 04:35

** Analysts at J.P. Morgan raise FY24 earnings estimates for
Australia's Flight Centre Travel Group  FLT.AX  by 3% to A$320
mln ($209.63 mln), noting that the second half is seasonally
stronger than the first
    ** Brokerage increases price target to A$22.50 from A$21.50,
retains "neutral" recommendation 
    ** However, FLT shares fall as much as 2.2% to A$21.440,
extending losses from the previous session
    ** Travel retailer on Wednesday tightened FY24 underlying
profit before tax guidance range to A$316 mln to A$324 mln from
A$300 mln to A$340 mln
    ** While there are some structural headwinds including
airline commission cuts and supply constraints, co optimised its
business model during the pandemic, leading to significantly
improved operating leverage prospects - J.P. Morgan
    ** Stock had risen 7.7% this year, as of last close

($1 = 1.5265 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com;))