In an initial assessment of Flight Centre’s first quarter, Citi assesses the company’s revenues are gradually improving led by corporate travel revenue and limited liquidity drawdown during the quarter.
Citi expects demand for domestic leisure activities will be high once the Victorian and Queensland borders re-open. Flight Centre expects corporate travel to return to profitability by late FY21 while Leisure is expected to be profitable in FY22.
Preferring to remain cautious given the rising covid-19 cases in the US, Citi retains a Neutral rating with a target of $14.10.
Sector: Consumer Services.
Target price is $14.10.Current Price is $13.82. Difference: $0.28 – (brackets indicate current price is over target). If FLT meets the Citi target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
