The company has downgraded guidance by -12% to $335-360m for pre-tax profit in FY19. Credit Suisse notes the Australian leisure business continues to be challenged and total transaction value appears to have declined in the first months of 2019.
Meanwhile, the Americas is apparently performing strongly amid growth in corporate. The broker considers Flight Centre is moving towards a more sustainable base in its Australian leisure business and leisure is becoming less material overall.
Neutral rating maintained. Target is reduced to $39.72 from $41.97.
Sector: Consumer Services.
Target price is $39.72.Current Price is $39.00. Difference: $0.72 – (brackets indicate current price is over target). If FLT meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
