UBS analyst, Ben Gilbert, has a buy rating on FLT and gives some background to his thinking

UBS analyst, Ben Gilbert, has a buy rating on FLT and gives some background to his thinking. Gilbert says, if you take out once off hedging losses in their HY result Flight Centre's profit before tax (PBT) is running at around 22%. With FY guidance of around 12% he believes Flight Centre could exceed consensus expectations. With the stock trading at or about the 1 year forward PE of the market and with an earnings beat on the horizon FLT is looking pretty attractive. So what are the catalysts for a re-rating? Gilbert says UBS is observing a breakdown in the correlation between the Australian Dollar and outbound travel, indicating the Company is less susceptible to a falling dollar than is currently perceived. Flight Centre also has a strong presence in corporate travel reducing their exposure to discretionary travel - a point Gilbert thinks is not fully appreciated. (VIEW LINK)

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