What’s the outlook for the Flight Centre (ASX:FLT) share price in 2022?

Here’s what the new year could bring the travel share.

| More on:
two older men wearing colourful tropical patterned shirts and hats like tourists puzzle over a map one is holding while he other holds up a hand as if indicating he doesn't know where they are going.

Image source: Getty Images

The COVID-19 pandemic has been particularly challenging for the Flight Centre Travel Group Ltd (ASX: FLT) share price, but could 2022 be its year?

At the time of writing, the Flight Centre share price is $17.46.

That’s 8.5% higher than it was at the start of 2021 but 56% lower than it was at the end of 2019. Though, the company now has roughly double the number of outstanding shares it did prior to the pandemic.

Let’s take a look at what experts predict could happen to Flight Centre’s stock in 2022.

What might 2022 bring the Flight Centre share price?

Unfortunately for bullish investors, experts aren’t entirely confident in the Flight Centre share price going forward.

In fact, Datt Capital managing director Emanuel Datt isn’t generally optimistic about ASX travel shares in 2022.

Datt recently told The Motley Fool that Flight Centre, in particular, might be impacted “should social confidence remain low in visiting stores physically”.

That’s a similar sentiment to Regal Funds chief investment officer Philip King. King recently told the Sohn Hearts & Minds Investment Conference Flight Centre is his top short pick.

The fundie believes Flight Centre’s outstanding notes will cap its share price for the foreseeable future, while its bonds add risk.

King is also worried about the company’s income streams after it closed more than half of its physical stores during the pandemic. Additionally, the fundie is wary of a potential cultural shift towards booking flights directly through airlines.

Speaking of shorting, the company has held the title of the ASX’s most shorted share for much of 2021.

The Motley Fool Australia’s most recent weekly short-selling roundup found the company had a 14.6% short interest.

However, Goldman Sachs remains neutral on the travel agent.

Earlier this month, the broker released a prediction on how the Omicron COVID-19 variant could impact Australia and ASX travel stocks. So far, it seems to be on the money.

Goldman expects the first quarter of 2022 to bring a surge of new Omicron infections. Though, it predicts vaccinations will keep hospitalisation rates low.

Therefore, the broker thinks travel stocks – and Flight Centre in particular – will see a drop in earnings early next year, but a fast recovery.

Goldman Sachs has slapped the Flight Centre share price with a $20.40 target. That implies a 19% upside on its current level.

Should you invest $1,000 in Flight Centre right now?

Before you consider Flight Centre, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Flight Centre wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

More on Broker Notes

Red buy button on an apple keyboard with a finger on it.
Broker Notes

Top brokers name 3 ASX shares to buy today

Brokers are feeling bullish about these ASX shares...

Read more »

A trendy woman wearing sunglasses is making it rain, spraying cash on that bargain.
Broker Notes

Macquarie reveals 2 sectors where bargain ASX shares still exist

The broker reckons ASX shares and US equities are still expensive, even after the recent pullback.

Read more »

A man leans out of his car window with a massive smile on his face and waves.
Industrials Shares

‘Too early to brake for the next exit’: What this top broker likes about Transurban shares

Analyst sentiment appears to be bullish on Transurban.

Read more »

a young girl wearing a set of airplane wings stands on a tarmac with hands in the air and an excited look on her face as though she is about to take off.
Broker Notes

Ready for takeoff? Top broker sees smooth runway for Qantas shares in 2022

Travel stocks are back in the limelight it seems.

Read more »

A group of three builders wearing worker overalls and carrying hard hats in their hands jumps jubilantly atopa rooftop space on a commercial building with an airconditioner shaft in the background and the sun behind a light cloud behind them.
Broker Notes

Why is the James Hardie share price surging higher today

We look at what's driving the recovery in the building materials company's shares on Wednesday.

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Ask a Fund Manager

2 ASX shares I have supreme confidence in: fund manager

Ask A Fund Manager: Glenmore Asset Management's Robert Gregory names a pair of stocks that are both his biggest holdings…

Read more »

Two brokers analysing the share price with the woman pointing at the screen and man talking on a phone.
Broker Notes

How does the IAG share price stack up against analyst ratings?

Let's check in and see.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Broker Notes

Broker names 3 reasons the South32 share price could be cheap

South32 shares could be great value according to one leading broker...

Read more »