The Qantas Airways Limited (ASX: QAN) share price is in the green today amid news the airline will be adding a new domestic route to its offerings.

Qantas will begin flying between Brisbane and Launceston 3 times a week in November.

The airline’s budget operation, Jetstar, already flies the route. It will be adding another 2 flights each week between the Queensland capital and the northern Tasmanian city.

Right now, the Qantas share price is $5.32, 1.82% higher than its previous close.

Comparatively, the S&P/ASX 200 Index (ASX: XJO) is gaining 0.64% today.

Let’s take a closer look at today’s news from Qantas.

Qantas share price takes off amid new flight path

The Qantas share price is taking off today. It comes after the company announced it will soon begin operating Qantas flights between Brisbane and Launceston for the first time.

The new flights will see an extra 15,000 seats available to fly between the cities each week.

Qantas said it will fly the route 3 times a week from November 2021 until March 2022. At the end of March, it may alter the offering in line with demand.

It’s the eighth new route Qantas has introduced to Tasmania since Australia’s international borders shut.

The airline said demand for flights to and from Tasmania has increased alongside the number of Australians’ seeking out domestic holidays.   

The Qantas share price was bolstered last month when it announced its domestic operations were 95% cash-flow positive over financial year 2021.  

Qantas’ domestic and international CEO Andrew David commented on the new route:

Tasmania has been very popular with travellers in the past year and we’re pleased to be making it easier for Queenslanders to visit the island’s north coast with its historic estates, premium wineries, and famous wilderness.

More visitors will be great for the Tasmanian economy this summer and these flights will also open up more travel options for Launceston residents to Brisbane and onward Queensland destinations.

Right now, travellers looking to fly between Brisbane and Launceston can get their hands on a one-way ticket for a special price of $169.

The post Qantas (ASX:QAN) share price gains amid new domestic flight offering appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. 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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The Mesoblast limited (ASX: MSB) share price is having another year to forget in 2021.

Since the turn of the year, the biotechnology company’s shares have fallen 27% to $1.69.

Is the Mesoblast share price good value now?

The good news for investors and the company’s long-suffering shareholders is that one leading broker believes the Mesoblast share price could be very good value.

According to a note out of Bell Potter, its analysts have retained their speculative buy rating but trimmed their price target slightly to $3.45.

Based on the current Mesoblast share price, this price target implies potential upside of greater than 100% over the next 12 months.

Why is the broker bullish?

Bell Potter remains positive on Mesoblast due to the belief that its remestemcel-L product is approaching a key inflection point in the fourth quarter of calendar year 2021.

It notes that the company was hit with an unexpected request for more information from the US Food and Drug Agency (FDA) last year for remestemcel-L’s use in paediatric GvHD. While this has delayed the time to first revenues from the product, Bell Potter is encouraged with recent developments.

The broker explained: “Based on recent discussions with FDA’s CBER, there is no further talk about a confirmatory adult trial, which is a key positive and reflects that the efficacy of this life saving therapy is undeniable. The OTAT meeting to be held in 4QCY21 to discuss critical aspects of the manufacturing and quality control process including potency assays is now the gating event to a potential BLA resubmission with a 6 month review clock.”

What else?

Bell Potter notes that those potency assays are also key for label expansion into treating COVID-19 ARDS.

Pleasingly, the broker highlights that “initial FDA feedback is that the assays currently in development appear to be reasonable based on in vitro data.”

Furthermore, with the next trial likely to be focused on patients <65 years of age, where there was strong survival benefit observed, Bell Potter believes this increases the chances of a positive outcome.

Another reason the broker is bullish on the Mesoblast share price is that, based on the above, it believes the company’s game-changing deal with Novartis will go ahead.

It commented: “We continue to believe there is strong likelihood of closure in 2HCY21 (however timing could be pushed from 3QCY21 to 4QCY21 in our view) based on the survival benefit observed in the recent trial. As a reminder closing of this deal will provide US$50m to MSB (US$25m in cash and balance in equity) and will be a key catalyst for the stock.”

The post Top broker tips Mesoblast (ASX:MSB) share price to double in value appeared first on The Motley Fool Australia.

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• Mesoblast (ASX:MSB) shares rise as CEO reassures market on new FDA questions
• ASX 200 rises, Harvey Norman falls, Mesoblast sinks

Motley Fool contributor James Mickleboro 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 no position in any of the stocks mentioned. 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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The Zoom2u Technologies Ltd (ASX: Z2U) share price has rocketed 100% after the company completed its initial public offering (IPO) on Friday.

Zoom2u shares are now changing hands at 40 cents apiece, after entering the secondary markets at 20 cents.

What is Zoom2u Technologies?

Zoom2u is a delivery service that offers its customers a Software as a Service (SaaS) business model. It has a product that manages bookings, optimises routes, and shares live locations of couriers with customers. It actually operates two businesses, Zoom2u itself and Locate2u.

The company also develops intellectual property in a number of other technology products, through its subsidiaries.

It was founded in 2014 by now CEO Steve Orenstein, who started Zoom2u after selling a previous company “to a NYSE company”.

Zoom said its IPO was oversubscribed from new shareholders including institutional, professional, and retail investors.

It successfully raised $8 million at 20 cents per share, with a market capitalisation of $34.7 million at the offer price.

According to the ASX release, the company has “started FY22 strongly, with significant increases in number of customers, drivers, total deliveries, and gross marketplace value (GMV)”.

Additionally, it stated the company is “well-positioned to capitalise on favourable tailwinds” in the Australian and global delivery services market.

In terms of operations, the company achieved a compound annual growth rate (CAGR) in revenue of 71% between FY2015 and FY2021.

This positive outlook from the company appears to be driving up the Zoom2u share price.

What did management say?

Speaking on the IPO, Orenstein said:

We’ve been delighted by the response the IPO has received from institutional, professional and retail investors which led to a significant level of demand, which was validation of the company’s performance to date and growth strategy.

Regarding its next moves, Orenstein added:

Zoom2u’s vision is to be the future leader in last-mile delivery both in Australia and across the globe. The first two months of FY22 have started strongly with lockdowns in New South Wales and Victoria supporting growth in revenue, deliveries and GMV. We remain confident that the company will continue to drive growth, delivering sustained operational performance for shareholders in FY22 and beyond.

Investors can expect to see more action for the Zoom2u share price in its first full week of trading from next Monday.

The post Zoom2u (ASX:Z2U) share price doubles on initial public offering appeared first on The Motley Fool Australia.

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• Is the ResMed (ASX:RMD) share price in the buy zone?
• If only Gelion was an ASX share! Here’s why its batteries are making news
• If there is another stock market crash, will we learn from our mistakes?
• Which ASX 300 shares are leading the way as the top movers on Friday?
• Why the Viva Leisure (ASX:VVA) share price is surging 16% today

The author Zach Bristow has no positions 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 no position in any of the stocks mentioned. 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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The ResMed Inc (ASX: RMD) share price has been a strong performer in 2021.

Since the start of the year, the sleep treatment focused medical device company’s shares have risen a sizeable 45% to $39.76.

This is more than four times greater than the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

Where next for the ResMed share price?

Unfortunately, one leading broker believes the ResMed share price may now have peaked for the time being.

According to a note out of Goldman Sachs, it has retained its neutral rating and $36.20 price target.

Based on the current ResMed share price, this implies potential downside of 9% over the next 12 months.

What did the broker say?

The broker notes that ResMed has just held its annual investor day event.

And while the company spoke positively and reiterated its expectation of a US$300 million to US$350 million revenue tailwind from a competitor product recall, it isn’t enough for a more positive rating. This is largely due to the current valuation of the ResMed share price.

Goldman explained: “Our primary challenge with the stock at these levels is valuation. Clearly, RMD has a substantial opportunity to capture sustainable share from a material product recall, but we believe the earnings upside may not justify US$15bn (A$20bn) of additional market capitalisation since mid-May (43x-50x the guided FY22 revenue tailwind).”

The broker is forecasting solid sales and earnings growth through to FY 2026. However, the level of growth it is forecasting is simply not enough to justify the higher than normal multiples its shares trade on.

It said: “We forecast normalised sales/earnings CAGRs of +7%/+8% respectively (FY23-26E), modestly below recent historical run-rates, and yet valuation of 33.1x NTM EV/EBITDA is now a substantial sector premium and +57% vs. history. We remain Neutral-rated.”

The post Is the ResMed (ASX:RMD) share price in the buy zone? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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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ASX investors are a curious bunch. If we hear of a company that may be doing well, a natural instinct is to look for it on the ASX boards, our public share market. That seems to be the situation that is going on with the renewable energy company Gelion.

Gelion has been making headlines this week. A news release from the University of Sydney this morning tells us that Gelion is partnering with another compnay – Battery Energy Power Solutions – to “make and distribute the Gelion Endure zinc-bromide battery”.

WIth this in mind, many ASX investors might be keen to buy some Gelion shares and join this party. After all, renewable energy is an exciting growth area for many investors right now.

Alas, that won’t be possible, at least for now. That’s because Gelion remains a private company, unavailable for public investment through the share market.

Who is Gelion, and why isn’t it on the ASX?

Gelion was actually a creation of the University of Sydney, hence the news release this morning. The University still remains an investor in the company.

Even so, there’s no doubt Gelion is an exciting start up. Its flagship zinc-bromide battery was developed by Professor Thomas Maschmeyer, and will now be manufactured at Battery Energy’s Sydney factory in Fairfield.

These new battries can reportedly deliver power more efficiently and safely than a standard lthium ion one. In the release, Professor Maschmeyer said the following in the technology:

For stationary energy storage, zinc-bromide batteries do away with the need for expensive cooling and maintenance systems. And they can’t catch fire…

We recently tested the battery by heating it on a barbeque plate at about 700 degrees for half an hour… Not only did the battery not catch fire, it continued to operate, keeping a light on through the whole test.

Gelion CEO Andrew Grimes also had a few things to say on this development for the company:

Gelion’s vision is to play a leading role in the transition to clean energy across the globe…

In the coming months, we will be focused on demonstrating our next-generation battery systems in-field in Australia, commencing later this year.

New battery technology is not all that Gelion has cooking in its kitchen though. Last year, Gelion announced that it had developed a solar-powered bench using its battery technology. These benches were installed across the University of Sydney campus, and seem to have proved an initial success.

But, as we discussed earlier, Gelion won’t be available to retail ASX investors just yet. But watch this space, you never know what the future might hold for this exciting company.

The post If only Gelion was an ASX share! Here’s why its batteries are making news appeared first on The Motley Fool Australia.

More reading

• If there is another stock market crash, will we learn from our mistakes?
• Which ASX 300 shares are leading the way as the top movers on Friday?
• Why the Viva Leisure (ASX:VVA) share price is surging 16% today
• Why the Oil Search (ASX:OSH) share price is leaping out of the trading pause
• Why the Whitehaven (ASX:WHC) share price is gaining on Friday

Motley Fool contributor Sebastian Bowen 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 no position in any of the stocks mentioned. 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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Much like the seasons, stock market crashes come and go. However, unlike the predictable nature of changes in season, the market’s next move is near impossible to foresee.

As long-term investors, we accept this unstructured cyclic pattern that ebbs and flows as it pleases. One thing we know for sure is that time and time again crashes eventually give way to new highs.

Conveniently, we don’t need to look too far back to reflect on such an occurrence. It was 17 months ago that the S&P/ASX 200 Index (ASX: XJO) capped off its ~32% COVID-19 induced crash. An event that unfolded in the space of a mere 28 days from top to bottom. Yet, here we are 17 months later and 53.5% higher.

Looking back, we now have the benefit of hindsight — and while that may not be helpful to the decisions made back in 2020, it can be put to good use in the event of any future stock market crashes.

Lessons worth remembering for another stock market crash

Timing the market is a fool’s errand

It seems obvious, but it must be said — no one can accurately predict the future, and certainly not consistently. Occasionally, we might ‘luck out’ and sell out of a company at the top, or buy-in towards the bottom. However, this strategy comes with its flaws.

See, we humans are emotional beings. As much as we’d like to believe we can make completely rational decisions, our instinctual nature tends to override our logical decision-making. The problem with this is that when the market is falling, it instils fear. We can’t help but be overwhelmed with the numbing distress of losing our hard-earned money. As a result, we often avoid the stock market completely when it is crashing.

However, the fact is, the days of the greatest historic stock market returns are wedged in between some of the worst.

In other words, you either need a DeLorean from Back to the Future to pick which days to buy and sell. Or you employ the strategy of dollar-cost averaging and settle in for the long haul. One of those two options is feasible at the time of writing this article.

Allocate appropriately based on your own circumstances

The next lesson is more of a personal consideration. When investing and the market is going up, it is easy to get carried away. It is important to consider how a stock market crash would impact your own situation and to invest accordingly.

In terms of cash, a good rule of thumb is to conserve roughly 6 months’ worth of expenses. This could be higher or lower depending on your circumstances. The importance of this emergency fund is to ensure that we as investors are not forced to sell our investments while they are in the doldrums. Because, as we discussed above, it could be soon after selling that they bounce back.

At the same time, having some extra cash on the sidelines affords us the ability to take advantage of depressed share prices, if we so please.

Additionally, taking an audit of our investment allocations in terms of sectors can also be important. For example, if a portfolio was heavily weighted towards retail shares, would we still be able to sleep at night if it was particularly hit hard during a stock market crash?

This self-assessment ensures that we can stomach the risk we have assigned ourselves. If we can’t, then it jeopardises the ability to stay the course through market volatility.

Look at the business, not the share price

Lastly, our final lesson is helpful in aiding in our rational decision-making during irrational market moments.

While the share price matters to investors in the long term, it can be a distraction in the short term. At the end of the day, we are investing in businesses and people, not just ticker codes on a screen.

Amazon.com, Inc. (NASDAQ: AMZN) is a good example of this. During the dot-com crash, the company’s share price plummeted 80%. Yet, all the internal metrics relating to sales, customer numbers, etc. were in an upwards trend.

It is during market crashes that a disconnect between the share price and the business fundamentals can occur. In the words of Jeff Bezos, “The company is not the stock, and the stock is not the company.” So, in saying that, it can be helpful to look at the progress of the company during such times.

Avoiding a stock market crash

This is a trick question, there is no avoiding stock market crashes as a long-term investor. Instead, we should only hope to navigate them better. Like a fisherman going out to sea — we are likely to encounter the occasional storm and rough waters — but as long as we have come prepared, then we can be confident in our actions.

Ironically, rough waters can be even better for fishing, as choppy conditions provide good conditions for fish to be more active in the water. So, with our lessons in mind, we should be equipped to cast a line in the next stock market crash.

The post If there is another stock market crash, will we learn from our mistakes? appeared first on The Motley Fool Australia.

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• Which ASX 300 shares are leading the way as the top movers on Friday?
• Why the Viva Leisure (ASX:VVA) share price is surging 16% today
• Why the Oil Search (ASX:OSH) share price is leaping out of the trading pause
• Why the Whitehaven (ASX:WHC) share price is gaining on Friday
• It’s been a great week so far for the Flight Centre (ASX:FLT) share price

Motley Fool contributor Mitchell Lawler 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 no position in any of the stocks mentioned. 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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The S&P/ASX 300 Index (ASX: XKO) is on the rebound today, following yesterday’s 1.9% market sell-off.

In the first few minutes after the market open, the ASX 300 soared 0.81% higher to 7,432 points. However, the index has lost some of these gains, now trading up 0.36% to 7,398 points.

Let’s take a look at which ASX companies are making moves on the ASX 300 chart.

Vulcan Energy Resources Ltd (ASX: VUL)

Investors are fighting to get a piece of the lithium developer, sending the Vulcan share price up 12.5% to a record high of $16.45 today.

The company hasn’t released any news since its corporate presentation last week, which highlighted its Zero Carbon Lithium strategy. Vulcan recently entered into a 5-year strategic partnership and a binding lithium offtake term sheet with Renault Group.

It’s worth noting that Vulcan shares are now up about 480% since the start of this year.

Liontown Resources Limited (ASX: LTR)

The Liontown Resources share price is also pushing ahead on Friday, up 8.53% to $1.15.

The emerging lithium producer also released a presentation last week. The company provided details on its demerger with a subsidiary, Minerals 260.

Liontown Resources stated it will focus on developing its world-class Kathleen Valley Lithium Project, while Minerals 260 will concentrate on exploring the PGE-nickel-copper-gold system in the Julimar region.

Novonix Ltd (ASX: NVX)

Another significant mover today is the Novonix share price, up 9.21% to $6.05.

Despite no news coming out of the lithium company, investors appear to be bullish on its future prospects.

The company’s share price has moved 388% higher this year on the back of strong lithium prices, which are up 98% year to date.

Which ASX companies are heading the other way?

Zimplats Holdings Ltd (ASX: ZIM)

The Zimplats share price is down a sizeable 3.6% to $22.73. Investors are selling the mining company’s shares despite no news being reported since its full-year results on 31 August.

A possible catalyst for the decline could be some profit-taking from investors following the release of the results. Zimplats shares are up 72.8% in 2021.

Polynovo Ltd (ASX: PNV)

Also being weighed down by investors today is the Polynovo share price, down 4.68% to $1.94.

The medical device company announced the resignation of its chief operating officer, Anthony Kaye.

Polynovo advised that Kaye will be returning to global biotech giant CSL Limited (ASX: CSL) in a more senior role.

The post Which ASX 300 shares are leading the way as the top movers on Friday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. and POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The Viva Leisure Ltd (ASX: VVA) share price is surging despite no price-sensitive news having been released by the company today.

However, less than 2 hours before the ASX closed yesterday, Viva Leisure released an update to the market.

The update outlined the Commonwealth Bank of Australia‘s (ASX: CBA) decision to defer its formal review of Viva Leisure’s financial performance.

Additionally, some of its New South Wales health clubs will soon be able to reopen.

While the update wasn’t price sensitive, the market has seemingly reacted favourably nonetheless.

Right now, the Viva Leisure share price is $1.91, 16.46% higher than its previous close.

Let’s take a closer look at Viva Leisure’s recent update.

Viva’s market update

The Viva Leisure share price is soaring today, potentially spurred by a market update released by the company yesterday afternoon.

Then, the company announced CBA has agreed to defer its formal review of financial covenants until March 2022. The bank agreed to the deferral at the request of Viva Leisure.

In its financial year 2021 results, Viva Leisure noted it had agreed to new credit terms for a debt facility with CBA worth approximately $35 million during the financial year just been.

The facility comprises a $25 million Market Rate Loan facility – which was drawn to $10 million at the time of Viva Leisure’s earnings release – a bank guarantee facility, and a direct debit facility.

Additionally, Viva Leisure announced 20% of its NSW portfolio will be allowed to reopen from 11 September.

The news followed the NSW Government’s decision to lift COVID-19 lockdowns in regional parts of the state.

The reopening will see the doors of 7 of Viva Leisure’s businesses unlocked. However, they will still face certain restrictions.

Viva Leisure share price snapshot

Despite today’s uptick, the Viva Leisure share price is still firmly in the ASX red.

Right now, its share price is 35% lower than it was at the start of 2021. It has also fallen 21% since this time last year.

The post Why the Viva Leisure (ASX:VVA) share price is surging 16% today appeared first on The Motley Fool Australia.

More reading

• Viva Leisure (ASX:VVA) share price sinks 7% on capital raising efforts

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 no position in any of the stocks mentioned. 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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The Oil Search Ltd (ASX: OSH) share price is up 2.74% after exiting this morning’s trading pause. This comes after the company reported it has entered into a definitive agreement to merge with fellow ASX energy share Santos Ltd (ASX: STO) in an all-scrip transaction.

Both the Santos and Oil Search share prices were temporarily frozen earlier today at the companies’ request, pending today’s announcement.

News of a potential merger between the 2 oil and gas companies first came to light on 20 July. At that time, Oil Search rejected the initial merger proposal.

What are the terms of the merger?

If the merger passes the remaining regulatory hurdles, including approval from shareholders and the Papua New Guinean courts, then Oil Search shareholders will receive 0.6275 new Santos shares for each Oil Search share they own.

This is in line with the revised merger terms released to the market on 2 August.

Once the merger is complete, Oil Search shareholders will own 38.5% of the new combined company, which is forecast to have a market cap of $21 billion.

Santos forecasts the merger could result in “pre-tax synergies” of US$90–115 million per year once integration costs are settled.

The combined companies will have a balance sheet with more than US$5.5 billion of liquidity.

Commenting on the merger, Oil Search chairman, Rick Lee said:

Put simply, this merger provides Oil Search shareholders with a compelling opportunity to participate in a larger entity with significant scale, product mix, ESG and geographic diversity, and access to capital. The combined entity will have the capacity to deliver on an exciting pipeline of organic growth opportunities.

The merged company will be headed by Santos CEO, Kevin Gallagher, who said:

Santos and Oil Search will be stronger together and will have increased scale and capacity to drive a combined disciplined, low-cost operating model and unrivalled growth opportunities over the next decade.

Following the merger, three non-executive directors from Oil Search will join the Santos Board. Santos will maintain its head office in Adelaide.

The Oil Search Board has unanimously approved the transaction.

Oil Search share price snapshot

The Oil Search share price is down 0.53% in 2021 compared to a 10.5% gain for the S&P/ASX 200 Index (ASX: XJO). Over the past month, Oil Search shares have dropped 3.48%.

At the time of writing, the Oil Search share price is $3.75.

The post Why the Oil Search (ASX:OSH) share price is leaping out of the trading pause appeared first on The Motley Fool Australia.

More reading

• Santos (ASX:STO) share price climbs as Oil Search merger confirmed
• 5 things to watch on the ASX 200 on Friday
• Oil Search (ASX: OSH) share price falters after market update
• A closer look at how ASX hydrogen shares are faring in 2021?
• What is the future for the Santos (ASX:STO) share price?

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 no position in any of the stocks mentioned. 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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The Flight Centre Travel Group Ltd (ASX: FLT) share price has had a great week thus far. In the past 7 days, shares in the travel agency group have climbed more than 5% higher.

By comparison, the S&P/ASX200 Index (ASX: XJO) has fallen 1.3% during the same week.  

Let’s take a look at what’s been propelling the Flight Centre share price.

What’s been fuelling the Flight Centre share price?

Flight Centre has not released any price-sensitive news in the past week to explain the bullish price action.

However, shares in the travel agency group have been on the receiving end of positive coverage from brokers.

Leading broker Credit Suisse released a bullish note earlier this week that painted a positive outlook on the Flight Centre share price. Analysts upgraded the company’s shares to an outperform rating with an improved price target of $19.00.

The note cited several reasons for the positive outlook, including Australia’s COVID-19 vaccine rollout and recovery in the travel sector. Analysts also highlighted the resilience of Flight Centre’s corporate business.

In addition to a strong week, shares in Flight Centre have also had a stellar month, up by more than 21%.

More on Flight Centre

There have been several catalysts that have helped propel the Flight Centre share price higher in the past month.

Shares in the travel agency group have been boosted by the possibility of domestic and international travel resuming in the near future.

In addition, Flight Centre recently announced expansion plans earlier this month.

The company announced plans to launch its travel management business in Japan via a joint venture with Tokyo-based NSF Engagement Corporation.

It’s also important for investors to note that securities in Flight Centre remain one of the most shorted companies on the exchange.

According to the most recent data, shares in the travel agency group have a short interest of 10.1%.

As a result, some of the bullish price action could potentially be short-sellers covering their positions.

Snapshot of the Flight Centre share price

Despite the Delta outbreak of COVID-19 and broader travel restrictions, shares in Flight Centre have jumped more than 13% higher in 2021.

However, much of these gains have come over the past 3 weeks.

At the time of writing, shares in Flight Centre are strongly in the green today, up 1.35% to $17.96.

The post It’s been a great week so far for the Flight Centre (ASX:FLT) share price appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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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