Flight Centre (ASX:FLT) share price storms 6% higher on broker upgrade

A leading broker just became bullish on Flight Centre…
The post Flight Centre (ASX:FLT) share price storms 6% higher on broker upgrade appeared first on The Motley Fool Australia. –

The Australian share market may be dropping today but that hasn’t stopped the Flight Centre Travel Group Ltd (ASX: FLT) share price from storming higher.

At the time of writing, the travel agent’s shares are up 6.5% to $18.67.

This compares very favourably to a 0.4% decline by the S&P/ASX 200 Index (ASX: XJO).

Why is the Flight Centre share price storming higher?

The catalyst for the rise in the Flight Centre share price on Tuesday has been a bullish broker note out of Credit Suisse this morning.

According to the note, the broker has upgraded the company’s shares to an outperform rating with an improved price target of $19.00.

Based on the Flight Centre share price at Monday’s close of $17.50, this implied potential upside of 8.6% over the next 12 months.

However, with the company’s shares storming higher today, the upside is now a more modest 1.8%.

Why did the broker upgrade Flight Centre?

Credit Suisse upgraded the Flight Centre share price from a neutral rating to an outperform rating for a number of reasons.

One of those was the positive progress Australia is making with the vaccine rollout. This is expected to support the travel market recovery and underpin its return to break-even.

In addition to this, the broker is a big fan of Flight Centre’s corporate business. It notes that the high quality business has been winning market share and appears to believe this trend will continue.

What about its rivals?

Unfortunately, Credit Suisse isn’t as positive on the Webjet Limited (ASX: WEB) share price. This morning it downgraded the online travel agent’s shares to a neutral rating with a $5.70 price target.

While the broker sees significant upside if Webjet delivers on its cost reduction targets, it isn’t enough for a more positive rating. This is due largely to valuation reasons.

Nevertheless, this hasn’t stopped the Webjet share price from climbing almost 1% today.

The post Flight Centre (ASX:FLT) share price storms 6% higher on broker upgrade appeared first on The Motley Fool Australia.

Should you invest $1,000 in Flight Centre right now?

Before you consider Flight Centre, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Flight Centre wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 midday update: BHP & Fortescue fall, Flight Centre storms higher

These are the 10 most shorted ASX shares

ASX 200 down, Flight Centre rises, Redbubble falls

A2 Milk and Zip were among the most traded ASX shares last week

ASX 200 midday update: BHP sinks, Flight Centre expansion

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!