Is now a good time to buy Flight Centre shares?

One top broker tips a 17% upside for the travel giant's stock.

Key points
  • The Flight Centre share price has performed relatively in line with the broader market in 2022
  • But, with the company having turned a profit in late FY22, is now a good time to snap up shares in the ASX 200 travel giant?
  • These brokers think the stock is a hold. Though, they're tipping the Flight Centre share price to lift as much as 17%

The Flight Centre Travel Group Ltd (ASX: FLT) share price has struggled to gain traction in 2022, following the S&P/ASX 200 Index (ASX: XJO) into the year-to-date red.

The stock has slumped 10% so far this year. It's also around 50% lower than was prior to the onset of COVID-19. The Flight Centre share price last traded at $16.76.

Meanwhile, the index has dumped 11% over 2022 so far and is around 6% below its February 2020 high.

But the company returned to profitability late in financial year 2022. Does that mean now could be a good time to snap up Flight Centre shares?

Let's take a look at what experts are predicting for the ASX 200 travel giant's stock.

A girl holds a ticket and a passport in either hand and has a confused, vexed look on her face as though she is unsure.

Image source: Getty Images

What do brokers expect from Flight Centre shares?

While brokers seemingly expect the Flight Centre share price to rise over the coming year, none have gone so far as to encourage investors to snap up the stock.

As my Fool colleague James reported last week, no major brokers have buy ratings on the ASX 200 travel giant. Still, some have tipped plenty of upside for Flight Centre's stock.

Morgans senior analyst Belinda Moore is tipping a "strong recovery" for the company this financial year. However, its revenue isn't expected to return to pre-COVID levels for a while yet.

Cyclical factors, such as higher airfares, changes to its business mix, and lower commissions will likely weigh on the travel giant's bottom line, Moore said.

The broker doesn't expect the company's earnings to fully recover until financial year 2025.

Morgans has a hold rating and an $18.25 price target on Flight Centre shares, my Fool colleague James reports. That implies a potential 9% upside.

UBS' expectations aren't too far off those of Morgans. It has slapped the stock with an $18.30 price target and a neutral rating.

Goldman Sachs, however, is slightly more bullish.

It was surprised by the company's earnings in the Australia and New Zealand region last financial year. Though, it was disappointed by Flight Centre's performance in the United States.

The broker has a neutral rating and a $19.60 price target on Flight Centres shares. That represents a potential 17% upside.

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 positions in 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 Scott Phillips.

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