Macquarie believes a $700m capital raising provides the company with the ability to deal with the travel restrictions. While total transaction value in April was down -95%, an improvement is expected as travel restrictions gradually ease.
The broker remains cautious nevertheless, given the potential for a second wave of the virus and the brand damage & cash flow impact from the modified refund policy, resuming coverage with a Neutral rating and $11.25 target.
Sector: Consumer Services.
Target price is $11.25.Current Price is $9.98. Difference: $1.27 – (brackets indicate current price is over target). If FLT meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
