Jefferies cuts PT on Australia's Flight Centre on softer FY24 target

Flight Centre Travel

15/11/2023 19:26

** Jefferies cuts PT on Australia's Flight Centre Travel
Group  FLT.AX  by 5% to A$18.00 after softer-than-expected FY24
forecast
    ** The travel agency on Wednesday forecast FY24 underlying
PBT of A$270-310 mln ($175.77-201.81 mln), compared with Visible
Alpha consensus of A$310 mln
    ** Travel demand has remained robust to date, but may not be
immune to consumer challenges, and "we remain cautious on
management's 2% margin target" - Jefferies
    ** Brokerage expects company's time to value, a metric
measuring time taken for customers to engage with
product/service, to surpass pre-COVID levels by FY24 due to
strong ongoing travel demand
    ** Upgrades rating to "hold" from "underperform"
    ** 10 of 15 analysts rate the stock "buy" or higher, 5
"hold"; median PT is A$23.80 – LSEG data
    ** Stock up 29.6% this year, as of last close
    

($1 = 1.5361 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))