Flight Centre worries Citi
A DAY after Flight Centre shares hit a 15- month high on the back of improved profit guidance, analysts at Citi have cut the stock to a sell, saying growth opportunities for the travel group are limited.
Citi analyst Bryan Raymond said Flight Centre faced pressure from potentially weak growth in airfares and dwindling consumer demand, making the company’s current share price optimistic.
“The weak consumer is an emerging concern for Flight Centre’s volume growth,” Mr Raymond said in a report.
Mr Raymond said slow income growth and rising household bills could be impacting on the ability of Australians to spend money on travel, particularly to long- haul destinations such as North America and Europe.
He said that could mean some consumers switching to travel within Australia.