Morgans suggests ASX-listed Travel sector shares now represent a buying opportunity after a global derating of the sector on macroeconomic concerns.
Locally, some negatives for the sector have been a longer-than-expected return of A&NZ international airline capacity and China’s lockdown slowing volume in the Asia region, explain the analysts.
While FY22 forecasts for Flight Centre Travel are unchanged, the broker downgrades FY23 and FY24 forecasts. The target price falls to $19.60 from $20.34, while the Hold rating is maintained.
Sector: Consumer Services.
Target price is $19.60.Current Price is $17.87. Difference: $1.73 – (brackets indicate current price is over target). If FLT meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
