Flight Centre AGM

About the author:

Author name:

By Belinda Moore

Job title:

Senior Analyst

Date posted:

11 November 2015, 2:20 PM

Sectors Covered:

Agriculture, Food & Beverage, Travel and Chemicals

This morning we attended the Flight Centre Travel (FLT) AGM in Brisbane. The tone of the AGM was relatively upbeat and the chairman said the company is in great shape.

• 1Q16 trading was in line with full year guidance and FY16 guidance was reiterated.
• The AGM commentary highlighted how FLT's business model continues to evolve and change with travel and consumer trends.
• More acquisitions are expected to be made soon, possible in Asia and including online businesses.

We believe that FLT is well placed over the medium to longer term as it transforms from a travel agent to a world class travel retailer and benefits from the golden era of travel. This strategy will also allow it to capture more of the margin. FLT is well managed and has one of the best balance sheets on the ASX.

Recommendation

Trading on an FY16 PE of 13.5x and dividend yield of 4.4%, the stock represents good value in our view and we maintain a Buy recommendation.

More information

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