Flight Centre shares are trading around 52-week highs. Too late to buy?

Just how much further can Flight Centre shares climb?

Key points
  • Flight Centre shares have had an exceptional year in 2023, rising by almost 50% so far
  • Flight Centre is today just a whisker away from its current 52-week high
  • Even so, multiple ASX brokers still reckon this ASX 200 travel share can gain a lot more altitude

Of all the shares on the S&P/ASX 200 Index (ASX: XJO), Flight Centre Travel Group Ltd (ASX: FLT) would have to be one of the top performers for 2023 so far. Since the start of the year, this ASX 200 travel share has risen from $14.39 a share to the $21.57 we are seeing today. That's a gain worth a whopping 49.9%.

Compare that to the ASX 200's gain of 4.34% over the same period and it's clear we have a real winner here.

Flight Centre is back in the green today with its share price just a whisker away from its current 52-week high of $22.10. Flight Centre shares hit that mark just a couple of days ago too, back on 9 May.

Let's put things into some more perspective though. Although Flight Centre is up almost 50% in 2023 so far, it can still only boast of rising around 7.9% over the past 12 months:

Even so, we can't deny it's been a trip of a lifetime for Flight Centre investors recently.

Earlier this week, my Fool colleague Brooke examined why Flight Centre shares have had such a smooth ride over the past few months. One of the biggest factors at play is probably Flight Centre's total transaction value, which surpassed the company's pre-COVID highs in March.

But that begs the question: is it too late to buy Flight Centre shares today after the company has increased its market capitalisation by almost half this year alone?

A corporate-looking woman looks at her mobile phone as she pulls along her suitcase in another hand while walking through an airport terminal with high glass panelled walls.

Image source: Getty Images

Are Flight Centre shares a buy at their new 52-week high?

Well, as it happens, several ASX brokers have given their verdict on the Flight Centre share price this month. And they all seem to be on a very similar page.

Let's start with JPMorgan. As we covered last week, JPMorgan came out with an overweight rating on Flight Centre shares, with a 12-month share price target of $22.60. That would of course be another new 52-week high for Flight Centre shares if realised.

Fellow ASX broker Citi is even more optimistic. A Citi analyst recently gave the company a $23.80 share price target, and justified this by citing a "boost in passenger numbers, more corporate travel and greater supplier margins in FY24".

Then we have Morgans to consider. This ASX broker lifted its neutral rating on Flight Centre shares to 'add' earlier this month, with a lofty share price target of $26.25. That's a potential upside of around 22% if realised.

Morgans is estimating Flight Centre will be able to jack up its earnings significantly over the next few years, with an FY2025 earnings forecast of $295.5 million. This broker is also estimating Flight Centre will be in a position to return to paying dividends in FY2024.

All in all, most ASX brokers seem united in their love of Flight Centre shares right now. So, if these brokers are on the money, it is most certainly not too late to buy into this travel share today. But let's wait and see what happens.

 

Motley Fool contributor Sebastian Bowen 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. 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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