The Flight Centre Travel Group Ltd (ASX: FLT) share price is falling today, down 3.19% in early afternoon trade.
Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock closed yesterday trading for $22.58. At the time of writing, shares are swapping hands for $21.88 apiece.
Barring an afternoon rebound, Flight Centre shares look set to close lower for the fourth consecutive day.
But don’t feel too bad for stockholders.
As you can see on the chart below, the ASX 200 travel stock has been on a tear, up 53% so far in 2023.
So, is it time now to cool our jets on the Flight Centre share price?
What are brokers saying about the Flight Centre share price?
Flight Centre remains among the most shorted shares on the ASX, kicking off this week with a short interest of 10%.
Do these traders know something we don’t?
Well, here’s what three leading brokers have to say about the company’s outlook.
After the strong run higher this year, the analysts at Macquarie just downgraded the stock to ‘neutral’. Though the broker lifted its target price to $23.00 a share, some 2% above the current Flight Centre share price.
According to Macquarie (courtesy of The Australian):
Flight Centre’s corporate business is outperforming and demand for leisure travel remains strong. However, after rallying 58% year-to-date, the share price has approached our valuation.
Macquarie noted that potential mergers and acquisitions, additional market share gains, and further recovery in its segment margins could provide tailwinds for the company in the year ahead.
Ord Minnet has a more bullish take on the travel company. Following Flight Centre’s earnings guidance upgrade on 20 July, the broker placed a ‘buy’ rating on the stock, with a $26.75 target for the Flight Centre share price. That implies a potential upside of 22% from current levels.
Wilsons also has a ‘buy’ rating on the travel stock with a 12-month price target of $26.40 a share. That’s a potential 20% upside.
Flight Centre reports its financial results on 30 August.
