FLT - Citi rates as Sell
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The share price has been on strong uptrend with Citi analysts referencing a positive turn in the industry's cycle with oil prices having increased by circa 40% over the past 12 months; this is driving up airfares, helping revenue growth for travel agents such as Flight Centre.
However, the immediate outlook will be all about cost out, say analysts at Citi, and with the share price already factoring in material upside, they have decided to downgrade to Sell from Neutral.
Target price rises a further 9% to $59, but remains well short of where the share price is trading. Forecasts have been lifted by 3-4%.
Sector: Consumer Services.
Target price is $59.00.Current Price is $65.80. Difference: ($6.80) - (brackets indicate current price is over target). If FLT meets the Citi target it will return approximately -12% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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