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Highlights
- Flight Centre shares dip 0.6%, despite an earlier 1.5% gain.
- Stock trades 30% below Morningstar’s valuation, pressured by weak earnings and macro concerns.
- Analysts maintain a FY25 profit forecast of AU$364 million, highlighting strong fundamentals.
Shares of Flight Centre Travel Group (ASX:FLT) closed down 0.6% on Thursday, reversing earlier gains of 1.5%. The stock has fallen 17.6% year-to-date, reflecting ongoing investor concerns over travel demand amid global economic uncertainty.
Despite the decline, Morningstar believes the market's pessimism is overblown. The firm points out that Flight Centre's shares are trading more than 30% below its fair value assessment, primarily due to poor December-half earnings and mounting fears of a slowdown in travel demand driven by macroeconomic and geopolitical risks.
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