Here's what brokers are saying about the Flight Centre share price

Are Flight Centre's shares good value?

The Flight Centre Travel Group Ltd (ASX: FLT) share price was out of form last week.

Over the five days, the travel agent giant's shares lost 1.2% of their value and ended the period at $17.07.

This followed the release of the company's full year results for FY 2022.

Family going into a airport check-in line.

Image source: Getty Images

What are brokers saying about the Flight Centre share price?

Unfortunately, there are no major brokers that have buy ratings on the company's shares at the moment.

Though, that doesn't necessarily mean that some don't see value in the Flight Centre share price at the current level.

For example, according to a note out of Goldman Sachs, its analysts have retained their neutral rating with a trimmed price target of $19.60.

This implies potential upside of almost 15% for investors over the next 12 months.

Commenting on Flight Centre's results, the broker said:

In our view, the key area of positive surprise for us was the stronger than expected recovery in ANZ earnings and the continued strength in corporate account wins. However on the flipside, America's recovery was slower than expected driven by momentum strengthening only in the latter part of the year. In terms of revenue margin, management expects most of the underperformance to be related to unfavorable mix changes with higher corporate, domestic and VFR travel being key factors apart from elevated ticket price inflation.

What else are brokers saying?

Over at Morgans, its analysts have retained their hold rating with a reduced price target of $18.25. This suggests potential upside of 7% for the Flight Centre share price.

The broker feels that the company's shares are trading at a fair level at present considering the risks it is facing. Its analysts commented:

Following forecast changes, our valuation has fallen to $18.25. Based on our forecasts, FLT is trading on an FY24/25 PE of 17.4x/13.3x, which is fair given the current uncertainty. We consequently maintain a Hold rating.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

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