Flight Centre stock price still flying too high, says Morningstar
Shares in global travel agent Flight Centre are overvalued, trading at a 27 per cent premium to their $38 fair value estimate, according to Morningstar equity analyst Brian Han.
This is despite a fall of almost 30 per cent in the company’s stock price since August.
In a
, Han recommends investors “take flight” at current prices as more and more customers migrate to online-only services rather than bricks-and-mortar travel agencies.
“We believe the structural headwinds buffeting this the Australia and New Zealand divisions will continue, with Flight Centre’s efforts to expand into corporate travel and overseas markets unable to offset,” Han says.
“As such, we see the current trading multiples as still too high, despite our high…
