Buy, hold, sell: Flight Centre, Supply Network, Lottery Corporation shares

Experts reveal their ratings on three ASX shares in the consumer discretionary sector.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

S&P/ASX 200 Index (ASX: XJO) shares are barely in the green on Tuesday as investors wait for more news about US-Iran negotiations.

Trading Economics analysts say there are signs of progress from talks between American and Iranian officials in Switzerland.

The analysts said:

In a key development, Washington granted Iran a 60-day license to sell oil on international markets, raising expectations of a quicker recovery in global supply.

Traffic through the Strait of Hormuz has also picked up, with producers including Kuwait and the United Arab Emirates finding alternative routes to export energy, while Iran shipped more than 30 million barrels over the past week. 

Meanwhile, two experts give us their views on three ASX shares.

Let's check them out. 

Two ASX share investors sharing a secret.

Image source: Getty Images

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $11.85, down 0.75% today and down 21% in the calendar year to date (YTD). 

Belinda Moore from Morgans has a buy rating on this ASX 200 consumer discretionary share. 

Moore was not surprised after the company downgraded its guidance because of the Iran war.

Due to strong cash reserves and a depressed share price, Flight Centre also announced a new buyback of up to $200 million.

Moore said: 

Given recent downgrades from other travel industry peers due to the conflict in the Middle East, FLT's downgrade wasn't a surprise.

While a peace agreement and eased travel restrictions are positive, we think 1H27 will still be challenging.

We forecast a strong recovery in 2H27. If it wasn't for this conflict, FLT would have had a great year given its results for the first nine months were strong.

We are buyers of FLT because when operating conditions ultimately improve, both its earnings and share price will be materially higher.

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corporation share price is $5.55, down 0.2% today and up 7% YTD. 

Toby Grimm from Baker Young has a hold rating on Lottery Corporation shares.

On The Bull this week, Grimm explained:

Securing a 40-year extension as Victoria's exclusive lottery operator adds certainty given the importance of the contract and its longer than expected duration.

However, operating performance has been subdued amid challenging consumer conditions and unfavourable jackpot outcomes.

The company continues to identify cost savings, which will help fund digital investment.

The stock is trading at fair value, but we believe the stock appeals in the longer term, supported by a fully franked dividend yield.

Supply Network Ltd (ASX: SNL)

The Supply Network share price is $32.74, down 0.6% today and up 2% YTD. 

Grimm has a sell rating on this ASX 300 consumer discretionary share. 

He said: 

The truck and bus parts supplier has built a leading position in an industry benefiting from an ageing fleet on our roads. Group sales revenue of $200.1 million in the first half of 2026 was up 16.9 per cent on the prior corresponding period.

However, in our view, the stock screens as expensive given it was recently trading on about 33 times estimated earnings in 2026.

Current fuel price uncertainties present another challenge and may impact freight demand in the near term.

Motley Fool contributor Bronwyn Allen 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 Supply Network Ltd and The Lottery Corporation. The Motley Fool Australia has recommended Flight Centre Travel Group, Supply Network Ltd, and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

Six smiling health workers pose for a selfie.
Broker Notes

Buy, hold, sell: Charter Hall, Northern Star, Cochlear shares

We review three fresh buy, hold, and sell calls from expert market analysts.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Broker Notes

Down 53%, is it time to throw in the towel on CSL shares?

A leading analyst delivers his verdict on CSL’s plunging share price.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Broker Notes

Up 293%! Can Electro Optic Systems (EOS) shares keep rising?

Bell Potter believes this high-flying stock hasn't peaked yet.

Read more »

Five healthcare workers standing together and smiling.
Broker Notes

Up 21% since November, should I buy this dividend paying ASX All Ords healthcare share today?

A leading expert tips one ASX All Ords share to buy and one to sell today.

Read more »

Time to sell written on a clock.
Broker Notes

3 reasons why experts think CSL shares are a sell

Earnings pressure and downgrades weigh heavily on the biotech stock.

Read more »

gold, gold miner, gold discovery, gold nugget, gold price,
Broker Notes

With the gold price up on Monday, are Northern Star shares a good buy now?

A leading analyst provides his outlook for Northern Star’s shares.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Brokers believe that now could be the time to buy these shares.

Read more »

An oil refinery worker stands in front of an oil rig with his arms crossed and a smile on his face.
Broker Notes

Up 23% this year, should I buy Woodside shares today?

A leading analyst provides his outlook for Woodside’s outperforming shares.

Read more »