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Why is the Flight Centre share price tumbling 5% today?

Why is the Flight Centre share price struggling today?
The post Why is the Flight Centre share price tumbling 5% today? appeared first on The Motley Fool Australia. –

The Flight Centre Travel Group Ltd (ASX: FLT) share price is sliding today.

The travel company’s share price is falling 4.31% and is currently trading at $16.86. However, in earlier trade, the Flight Centre share price had fallen 5.21% before recovering slightly.

For perspective, Flight Centre shares leapt nearly 3% yesterday. Furthermore, the S&P/ASX 200 Index (ASX: XJO) is 0.26% higher today.

Let’s take a look at what is happening at Flight Centre.

Broker updates

Flight Centre shares are not the only ASX 200 travel shares dipping today. The Webjet Limited (ASX: WEB) share price is falling 1.67%, while Qantas Airways Limited (ASX: QAN) shares are down 1.96%.

Goldman Sachs has placed a neutral rating on the company’s shares with a $20.90 price target. This is nearly 24% more than the current share price. Previously, as my Foolish colleague Aaron reported, Goldman had a $20.40 price target on the company’s share price.

However, Credit Suisse has placed an underperform rating on the company’s shares with a $14 price target. Morgans has also expressed concern the company’s earnings may not go back to pre-COVID levels until FY2025.

Yesterday, Flight Centre shares surged on the back of the company’s upgraded guidance for the 2022 financial year.

The travel company reported it is expecting to report an EBITDA loss of $180 million to $190 million for FY2022. This is 11.9% better than the halfway point of the company’s previous FY2022 guidance.

Commenting on the results, managing director Graham Turner said:

After an incredibly challenging period, we were pleased to achieve our goal of returning to
monthly underlying EBITDA profitability in both the corporate and leisure sectors late in the
year

Flight Centre said the scale of the travel recovery exceeded the company’s expectations.

Flight Centre share price snapshot

The Flight Centre share price has surged 17% in the past year, while it has descended 4% in the year to date.

For perspective, the ASX 200 has lost nearly 8% in a year.

Flight Centre has a market capitalisation of about $3.3 billion based on the current share price.

The post Why is the Flight Centre share price tumbling 5% today? appeared first on The Motley Fool Australia.

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More reading

Why Flight Centre, Iress, Nitro, and Perseus shares are dropping today
ASX 200 midday update: Iress sinks on CEO exit, Flight Centre shares descend
5 things to watch on the ASX 200 on Tuesday
Here are the top 10 ASX 200 shares today
Why Damstra, Flight Centre, IAG, and Pantoro shares are pushing higher

Motley Fool contributor Monica O’Shea 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 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 Scott Phillips.

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