Insights

The Flight Centre (ASX:FLT) share price is up 40% in six months: Can it go higher?

The Flight Centre Travel Group Ltd (ASX:FLT) share price is up a sizeable 40% over the last six months. Can it go higher or has it peaked?
The post The Flight Centre (ASX:FLT) share price is up 40% in six months: Can it go higher? appeared first on The Motley Fool Australia. –

tourist, Chinese, airport, holiday, flight, flying

The Flight Centre Travel Group Ltd (ASX: FLT) share price has been a strong performer over the last six months.

During this time, the travel agent giant’s shares have rallied an impressive 40% higher.

Why is the Flight Centre share price up 40% in six months?

Investors have been buying Flight Centre shares during this time thanks to the improving outlook for the travel market following the successful development of several effective COVID-19 vaccines.

This has sparked hopes that travel and tourism could return to normal quicker than expected. And with Flight Centre having such a strong balance sheet following its capital raising and cost cutting, it could be in a position to put these funds to work on earnings accretive acquisitions when trading conditions return to normal.

Can the Flight Centre share price go even higher?

According to one leading broker, Flight Centre’s shares could have peaked now.

A note out of Morgan Stanley this morning reveals that its analysts have downgraded the company’s shares to an underweight rating with a $17.50 price target.

This compares to the current Flight Centre share price of $18.44.

Why did Morgan Stanley downgrade its shares?

The broker made the move on valuation grounds after the aforementioned strong gain by the Flight Centre share price.

In fact, the broker notes that Flight Centre’s shares are now trading ahead of pre-pandemic levels when adjusting for its capital raising.

Instead of Flight Centre, the broker believes investors should be buying Qantas Airways Limited (ASX: QAN) shares for exposure to the travel and tourism sector.

Morgan Stanley currently has an overweight rating and $5.90 price target on the airline operator’s shares.

It isn’t alone with that recommendation. This morning analysts at Macquarie upgraded Qantas’ shares to an outperform rating with a $6.35 price target.

Whereas last week Citi upgraded them to a buy rating with a $6.14 price target. This compares to the current Qantas share price of $5.48.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

The post The Flight Centre (ASX:FLT) share price is up 40% in six months: Can it go higher? appeared first on The Motley Fool Australia.

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!