Flight Centre shares rebound 30% from multi-year low: Can they keep climbing higher?

Flight Centre shares have softened again today. What's next?

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Flight Centre Travel Group Ltd (ASX: FLT) shares are trading in the red on Wednesday afternoon.

At the time of writing, the shares are down around 1% and trading at $12.48 each.

Despite today's slump, the shares are up around 12% over the past months and have rebounded an impressive 30% since they fell to a multi-year low of $9.62 in mid-May.

Now the question is, can Flight Centre shares keep flying higher? Or is today's decline the beginning of the next share price crash?

Here's what the experts think.

A woman on holiday stands with her arms outstretched joyously in an aeroplane cabin.

Image source: Getty Images

Buy, sell, or hold Flight Centre shares? Here's what brokers tip for the next 12 months

If broker analysis is anything to go by, we should see a lot more out of Flight Centre shares over the next year.

Market Index data shows a consensus buy rating for the ASX travel shares over the next 12 months. The average $15.36 target price implies a potential 23% upside ahead, at the time of writing.

TradingView data shows something similar. Out of 17 analysts, 15 have a buy or strong buy rating on Flight Centre shares. Another two rate the shares as a hold; however, they all agree on an upside ahead.

The average $14.69 target price implies a potential 18% upside, at the time of writing. Although some tip the shares to jump 45% to $18.13 over the next 12 months.

UBS is positive on Flight Centre Travel Group. The broker has retained its buy rating and $14.70 price target on the travel company's shares.

Morgans also believes the recent share price weakness has created an opportunity for investors. The broker pointed to the company's financial strength and the potential for a stronger recovery in the second half of FY27. It has a buy recommendation and a $14.80 target price on the shares.

Jarden recently upgraded Flight Centre shares to a buy rating with a $15.90 target price.

What could drive the ASX travel stock higher?

Slower-than-expected profit growth, higher travel costs, geopolitical tensions, and inflation concerns pulled the brakes on Flight Centre's shares earlier this year. 

But improved travel demand and less fuel price volatility have helped investor confidence recently. 

If fuel supply continues to improve and lower interest rates boost consumer spending, we could well see a stronger rebound ahead.

The company is also due to release its FY26 earnings results in late August. If the result comes in ahead of market expectations, we could see another lift in the share price. 

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 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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