Are Flight Centre shares still a good buy in September?

Flight Centre shares are climbing higher this morning.

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Key points

  • Flight Centre shares are currently rated as a buy, supported by a recovery expectation post-earnings season.
  • Despite recent declines, Macquarie and Morgans remain bullish on the stock.
  • The company saw a slight decline in profits but achieved a record transaction value, with expectations of stabilising market conditions and TTV growth in FY26.

The Flight Centre Travel Group Ltd (ASX: FLT) share price is 0.33% higher at the time of writing on Thursday morning, and changing hands at $12.14 a piece.

For context, the S&P/ASX 200 Index (ASX: XJO) is 0.83% lower this morning.

Flight Centre's share price spiked after the group released its FY25 results in late August, but investor confidence appears to have dwindled again. 

In September so far, Flight Centre shares have fallen 7.40%, and the share price is 41.47% lower for the year.

Which begs the question, are Flight Centre shares still a buy?

Flight Centre shares: Buy, hold, or sell?

TradingView data shows analyst consensus on Flight Centre shares continues to be for a buy or strong buy rating.

The data notes an average target price of $15.64 and a maximum of $20.75. According to the trading price at the time of writing, that represents a potential 28.8% to 70.9% upside for investors over the next 12 months.

Macquarie is one broker bullish on the travel stock. In fact, it recently named Flight Centre as one of its top post-earnings season picks, citing it as a stock which has been oversold and undervalued.

Macquarie described Flight Centre's past 12 months as "a year shaped by volatility & grey swan events". 

The broker placed an outperform rating on the stock with a price target of $16.55. 

Morgans also recently commented on its bullish outlook on Flight Centre shares. The broker has a buy rating and $15.65 12-month target price on the stock.

Morgans analysts believe earnings growth will accelerate in 2H26 when macroeconomic conditions and internal business initiatives improve. This presents a material upside for investors.

What's the latest from the ASX travel stock?

The company posted a 10% year-on-year decline in underlying profit before tax (UPBT) to $289.1 million in its results announcement in late August. Statutory profit before tax came in at $213 million, which was 3% lower than FY24.

It wasn't all negative, though. Flight Centre achieved a record total transaction value (TTV) of $24.5 billion, up 3% year on year. Its FY25 revenue of $2.78 billion was also up 3%.

Going forward, management expects some ongoing turbulence, but thinks the market will stabilise through FY26.

Macquarie agrees, saying it sees some green shoots for the business in FY26 with strong TTV growth across Flight Centre's Leisure and Corporate sectors and growth in Leisure enquiry and web traffic.

But the travel group is expected to post flat H1 FY26 profit due to "cyclical challenges".

Motley Fool contributor Samantha Menzies 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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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