Flight Centre anticipates a FY20 pre-tax loss in a range of -$475-525m. Citi downgrades to Neutral from Buy with a $13.50 target, given the uncertainty surrounding the resumption of global and domestic travel and the lack of catalysts outside of a successful vaccine.
Liquidity has improved and the monthly cash burn has reduced, although revenue is at just 7% of historical levels. Still, this likely rules out a second equity raising until early 2021, in the broker’s view.
Sector: Consumer Services.
Target price is $13.50.Current Price is $12.28. Difference: $1.22 – (brackets indicate current price is over target). If FLT meets the Citi target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).