FLT’s full-year result in late August is likely to bring volatility, but expectations across consumer-facing stocks are already low. After breaking above $13, we see the risk/reward as increasingly attractive.
We are also encouraged by competitor Web Travel’s strong first-half guidance, which beat consensus across TTV, revenue, and EBITDA, alongside the announcement of a new buyback. WEB rallied around 10% on the update, providing a positive read-through for the broader travel sector.
- We are bullish towards FLT, looking for a test of $16, or +20% higher.
Trade Idea: Buy Flight Centre (FLT) using a limit of $13.40, with stops at $12.50, around 7% risk.
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