The Flight Centre share price is diving 5% today. What’s next in April?

The Flight Centre share price is falling today but it’s well into the green over the past 30 days, up 15%.

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An aeroplane at an airport taxiing down the runway symbolising the improving Flight Centre share price

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Key points

  • Flight Centre shares are well into the green over the past month but are falling this morning 
  • Analyst sentiment is mixed and the consensus has Flight Centre shares swinging to the downside 
  • The consensus price target on Flight Centre is $18.97 per share

Shares in Flight Centre Travel Group Ltd (ASX: FLT) have been trading up this week and are now 14% higher over the past month. That’s more than twice the upwards movement of the S&P/ASX 200 Index (ASX: XJO) over the same period.

The Flight Centre share price is lower in early morning trade today though, down 4.79% to $19.46.

TradingView Chart

What’s in store for the Flight Centre share price in April?

Analyst sentiment is mixed on Flight Centre. For instance, JP Morgan is bearish on the stock and rates it a sell at a $15 per share valuation. Its analysts say that lines of revenue tied to leisure and international travel are likely to be worst hit in Australia and New Zealand.

The broker also says that because Flight Centre’s income is so tied up with these markets – 50% of 1H20 group total transaction value (TTV) to be exact – ongoing restrictions will continue to be a thorn in the company’s side.

Meanwhile, analysts at Goldman Sachs take the opposite side of the coin. They’re bullish on the Flight Centre share price moving forward.

Curiously, it recently mentioned that travel “appears to be relatively protected” amid ongoing COVID-19 restrictions. Primarily, it says this is due to pent-up demand, based on projections for Flight Centre’s Webbeds division.

Goldman mentioned that its travel expectations for Australia are for “consumption to remain robust at circa 6.7% compound annual growth rate (CAGR) over FY22-24 on a nominal basis”. It notes that leisure lines should see the highest run rate.

What’s the consensus on Flight Centre?

More than 57% of brokers covering Flight Centre have it as a hold right now. Just 14% recommend a buy, according to Bloomberg data. There are also four sell ratings (28% of coverage).

The consensus price target on Flight Centre is $18.97 per share. This suggests a small amount of downside potential using the ‘wisdom of the crowd’.

 

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Goldman Sachs. 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.

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