The Flight Centre Travel Group Ltd (ASX: FLT) share price is having another off day on Wednesday.
In afternoon trade, the travel agent giant's shares are down 2.5% to $19.80.
This means the Flight Centre share price is now down 12% since the start of May.
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Is the Flight Centre share price in the buy zone?
Given the recent weakness in the Flight Centre share price, some investors may be wondering if a buying opportunity has been created.
Well, the good news is that the team at Bell Potter appear to believe that is the case.
According to a note, the broker has retained its buy rating and lifted its price target by almost 20% to $24.50.
Based on the current Flight Centre share price, this implies potential upside of 24% for investors over the next 12 months.
What did the broker say?
Bell Potter was pleased with Flight Centre's recent third-quarter update, noting that the company returned to operating profit during the month of March.
It said:
FLT released a solid 3Q22e trading update, with the Group returning to breakeven as travel recovers in key markets and FLT increases market share. Underlying EBITDA was $8m in the month of March, with the Corporate business profitable at EBITDA and PBT, and Leisure approaching EBITDA breakeven (targeted for 4Q22e).
Looking ahead, the broker believes that the growth of Flight Centre's corporate business and a more profitable leisure business could have positioned the company to surpass its pre-COVID profits in FY 2024.
Based on this, it believes the Flight Centre share price is attractively priced at the current level.
The broker explained:
We see scope for FLT to surpass pre-COVID NPAT levels by FY24e, driven by organic growth in the Corporate business and a more profitable Leisure business post-restructure, which could see a consensus upgrade cycle. Our 12-month Price Target implies a FY24e P/E multiple of 17.9x, which we believe is justified.
