The Flight Centre Travel Group Ltd (ASX: FLT) share price could be good value.
That's the view of analysts at Bell Potter, who have spoken positively about the travel agent giant this morning.
Why is the Flight Centre share price good value?
According to a note out of Bell Potter, its analysts have retained their buy rating and lifted their price target on the travel agent's shares to $20.50.
Based on the current Flight Centre share price of $17.05, this implies potential upside of 20% for investors over the next 12 months.
Following a change of analyst, the broker has retained its "positive view on FLT's outlook and competitive position as global travel recovers in CY22e."
What is the broker saying?
Bell Potter is positive on the company due to its growing corporate business and the restructuring of its leisure operations.
It explained: "[its positive view is] supported by strong organic growth in the Corporate business and a restructured Leisure business that is highly leverage to the return of International outbound Australian travel. While there is still some uncertainty to recovery pathway, we believe sustained reopening's on milder COVID variants and increased global vaccinations is the base case, with consensus estimates on forward TTV and PBT/TTV margins not onerous in our view."
The broker also highlights its belief that the market is underestimating the strength of its corporate business.
Its analysts said: "FLT's corporate business continues to win market share in key markets, while maintaining 'excellent' customer retention, and should emerge from COVID with a structurally larger business despite near-term headwinds. We believe the market continues to underestimate the strong organic structural growth exhibited by the corporate business, given the current COVID headwinds, which are rapidly dissipating."
All in all, Bell Potter appears to believe this could make the Flight Centre share price a top option for patient long-term focused investors.
