from broker MB,*******Upgrade to the top...

from broker MB,
*******Upgrade to the top rating
****************upgraded to $20.00 (from $15.30),

Flight Centre Travel Group (FLT AU)
Preparing for take-off
Key points
 1H21 challenged but outlook supported by pent up demand and a leaner
business model. Leisure and Corporate expected to breakeven in CY21.
 Cash reserves adequate; available cash of ~$800m should be sufficient
until late CY22 at current run rate & assuming min. revenue improvement.
 Upgrade to OP (from N). Stock remains highly sensitive to +ve news flow &
valuation supported by strong macro conditions

With vaccines being rolled out, travel recovery may have seen its last
delay. While 1H21 was challenged (TTV: -88% and revenue -90%), FLT
expects both Leisure & Corporate to breakeven during CY21 with TTV
recovering to pre-COVID levels in FY24 (we assume an 80-85% recovery)

Earnings and target price revision
• FY21/22/2 EPS n.m./+24%/+14% driven by cost benefits/ op leverage. PT
upgraded to $20.00 (from $15.30), reflecting earnings changes & reduced
risk discount in FY24 (by 1/3) with vaccine rollout now underway.