The Flight Centre Travel Group Ltd (ASX: FLT) share price has been flying higher over the past month. Investors appear optimistic about a speedy recovery in the travel industry as Australia accelerates its vaccine rollout.
At Monday’s market close, the travel agent’s shares ended the day at $18.05. It’s worth noting that the company’s shares reached a 5-month high of $18.67 last week, before some slight profit-taking.
What’s fuelling the travel agent’s shares?
There are a few catalysts as to why the Flight Centre share price has been travelling upwards in recent times.
In late August, the company released its full-year results, highlighting month-on-month sales revenue growth despite lockdowns and heavy restrictions. In particular, the corporate sector in the United States gained momentum as trading conditions generally improved.
Flight Centre noted some countries, including the United States, Canada and the United Kingdom, are poised for strong returns in FY22. Coupled with its leaner and more efficient cost base model, the company expects this to provide solid profits over the long term.
Following its annual scorecard, a number of brokers weighed in on the Flight Centre share price with a positive outlook.
Swiss investment firm, UBS raised its view for Flight Centre shares by 7.1% to $17.25 apiece. Macquarie and JPMorgan also revised their ratings, increasing the price target by 6.5% to $16.50, and 12% to $14.00, respectively.
Early this month, Flight Centre revealed its expansion plans for Japan via a joint venture with NSF Engagement Corporation.
Flight Centre’s leading FCM travel management business will enter the fourth-largest corporate travel market from January 2022.
Management stated it intends on winning new local, regional and multi-national accounts, while also enhancing existing services in Japan.
Flight Centre share price summary
Since this time last year, the Flight Centre share price has been on a rollercoaster ride, gaining 45%. In 2021, the company’s shares are up 15%.
On valuation grounds, Flight Centre commands a market capitalisation of roughly $3.6 billion, with approximately 199.5 million shares on issue.