Shares of Australia’s Flight Centre Travel Group (ASX:FLT) extend their losing streak to a fourth consecutive day, seeing a 3.2% decline, bringing the price to A$21.865 per share.
Macquarie has decided to downgrade their rating for the company to ‘neutral’ from ‘outperform’, a decision that’s been attributed to Flight Centre’s recent surge in valuation.
Year-to-date, FLT shares have seen around a 55% increase, with an 18.5% climb since the end of June.
Despite the downgrade, Macquarie has raised their price target for the stock to A$23.00 from the earlier A$21.30, a decision based on last month’s earnings guidance revision made by Flight Centre.
On July 20th, the company updated their expectations for FY23 underlying EBITDA to be between A$295 million and A$305 million, a striking contrast to last year’s A$183.1 million loss.
Macquarie expects Flight Centre’s earnings through to fiscal 2025 to increase and is forecasting a FY23 EBITDA of A$301 million.
According to Refinitive data, of the 16 analysts that cover the stock, eight rate it as ‘buy’ or higher, six suggest to ‘hold’ and two recommend ‘sell’ or lower with a median price target of A$23.00.
Flight Centre Travel Group (ASX:FLT) is a global travel agency with operations in over 23 countries offering corporate, leisure and wholesale travel.