The COVID-19 pandemic has been particularly challenging for the Flight Centre Travel Group Ltd (ASX: FLT) share price, but could 2022 be its year?
At the time of writing, the Flight Centre share price is $17.46.
That’s 8.5% higher than it was at the start of 2021 but 56% lower than it was at the end of 2019. Though, the company now has roughly double the number of outstanding shares it did prior to the pandemic.
Let’s take a look at what experts predict could happen to Flight Centre’s stock in 2022.
What might 2022 bring the Flight Centre share price?
Unfortunately for bullish investors, experts aren’t entirely confident in the Flight Centre share price going forward.
In fact, Datt Capital managing director Emanuel Datt isn’t generally optimistic about ASX travel shares in 2022.
Datt recently told The Motley Fool that Flight Centre, in particular, might be impacted “should social confidence remain low in visiting stores physically”.
That’s a similar sentiment to Regal Funds chief investment officer Philip King. King recently told the Sohn Hearts & Minds Investment Conference Flight Centre is his top short pick.
The fundie believes Flight Centre’s outstanding notes will cap its share price for the foreseeable future, while its bonds add risk.
King is also worried about the company’s income streams after it closed more than half of its physical stores during the pandemic. Additionally, the fundie is wary of a potential cultural shift towards booking flights directly through airlines.
Speaking of shorting, the company has held the title of the ASX’s most shorted share for much of 2021.
The Motley Fool Australia’s most recent weekly short-selling roundup found the company had a 14.6% short interest.
However, Goldman Sachs remains neutral on the travel agent.
Earlier this month, the broker released a prediction on how the Omicron COVID-19 variant could impact Australia and ASX travel stocks. So far, it seems to be on the money.
Goldman expects the first quarter of 2022 to bring a surge of new Omicron infections. Though, it predicts vaccinations will keep hospitalisation rates low.
Therefore, the broker thinks travel stocks – and Flight Centre in particular – will see a drop in earnings early next year, but a fast recovery.
Goldman Sachs has slapped the Flight Centre share price with a $20.40 target. That implies a 19% upside on its current level.
The post What’s the outlook for the Flight Centre (ASX:FLT) share price in 2022? appeared first on The Motley Fool Australia.
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More reading
- Here’s what’s happening to the Flight Centre (ASX:FLT) share price today
- What boosted ASX 200 travel shares on Tuesday?
- Why is the Flight Centre (ASX:FLT) share price taking to the skies on Tuesday?
- Why is the short interest in Flight Centre (ASX:FLT) shares still growing?
- How high will ASX travel shares fly in 2022?
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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