Tag: Motley Fool

One broker has had some optimistic words to say about one particular sector. The brokerage outfit Saxo has suggested that S&P/ASX 200 Index (ASX: XJO) energy shares may have many years of strong profit generation to go. There are some non-ASX 200 shares that are also benefiting.

One of the main global impacts of Russia’s invasion of Ukraine has been the significant increase in energy prices. Before 2022, Russia was one of the main global exporters of commodities like coal, gas, and oil.

With Western nations avoiding Russian commodities where possible, it has pushed up the demand and price for non-Russian resources.

Australian coal producers are seeing coal prices jump. However, some investors may be wondering whether the strength for energy prices will have a short life.

Energy prices could stay stronger for longer

Saxo Bank’s head of direct sales David Harvie said:

Thematically and systemically, the greenification of our globe has a long way to go. It’s probably got decades to go. Or at least the foreseeable future, until our energy requirements are satisfied in what you could argue is an ESG way, and or greener way, and or a lack of fossil fuel inputs way. And we’ve been saying that as a house pre-Ukraine. We’ve been saying that as a house, pre-inflation.

We don’t think it’s going anywhere. It’s only been exacerbated by Ukraine. It will only be exacerbated by a very cold winter in Deutschland and all the other places up there. So, I think if I were an investor, it would be an area I’d be looking at.

There have been some big gains with ASX 200 energy shares, including coal producers.

For example, since the beginning of 2022, the New Hope Corporation Limited (ASX: NHC) share price has gone up 112%. The Whitehaven Coal Ltd (ASX: WHC) share price has risen by 167%.

As reported by my colleague Aaron Teboneras, another factor helping coal could be the recent International Energy Agency report which anticipates that “global coal demand will return to its all-time high this year. This is being driven by higher natural gas prices, which have intensified gas-to-coal switching in many countries”.

Whitehaven expects big profit

Whitehaven recently pointed out that coal prices set a new record during the quarter for the three months to June 2022 and “continue to be well supported”. Whitehaven is expecting to report FY22 earnings before interest, tax, depreciation, and amortisation (EBITDA) of $3 billion, up from $0.2 billion in FY21.

The broker Macquarie cautions that the strength of the coal price will determine how well (or not) Whitehaven can do. It’s expecting Whitehaven’s dividend yield to be 6.8% in FY22 and 11.5% in FY23. That’s despite the huge gain of the Whitehaven share price.

The post Why ASX 200 energy shares could still have decades of prosperity ahead: broker appeared first on The Motley Fool Australia.

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More reading

• Earnings preview: Here are 3 ASX 200 shares reporting this week
• 5 things to watch on the ASX 200 on Monday
• 2 years on, how close is the Flight Centre share price to its pre-COVID levels?
• ASX reporting season weekly wrap: Winners and losers
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tristan Harrison 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 Scott Phillips.

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The Pro Medicus Limited (ASX: PME) share price was a positive performer last week.

In response to the health imaging technology company’s full year results, it shares recorded a weekly gain of 4.2%.

Can the Pro Medicus share price keep climbing?

One leading broker still sees value in the Pro Medicus share price at the current level.

According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on the company’s shares to $58.18.

Based on the current Pro Medicus share price of $54.17, this suggests potential upside of 7.4% for investors over the next 12 months.

What did the broker say?

Morgans was impressed with Pro Medicus’ full year results and particularly its margins. Thanks to further operating leverage, the latter came in well-ahead of expectations. It commented:

PME recorded another year of strong growth across all metrics with the key highlight being further EBIT margin expansion to 67% (+400 bps on the pcp) well above expectations, highlighting the operating leverage of the business.

The broker also highlights that the company’s outlook remains as bright as ever. It said:

Outlook remains as strong as ever, highlighted by an increasing number of requests for tender proposals and more renewals from existing customers. The five-year forward contract value is up 31% to A$420m.

And while Morgans acknowledges that the Pro Medicus share price is not cheap at current levels, it believes the company’s quality and outlook justifies this.

It’s an impressive story, and one which we view with longevity. While currently fairly priced, we continue to view this as a strong long-term growth story which will continue to grow into its high multiple. Buyers on any weakness – it’s typically shortlived.

The post Pro Medicus share price tipped to rise amid ‘strong long-term growth story’ appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Pro Medicus share price fails to fly on 44% profit leap
• 5 things to watch on the ASX 200 on Thursday

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 positions in and has recommended Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Cochlear Limited (ASX: COH) share price could be heading higher from current levels.

That’s the view of analysts at Goldman Sachs, which have just reiterated their buy rating on the hearing solutions company’s shares.

This follows the release of a strong full year result for FY 2022 last week.

What is Goldman saying about the Cochlear share price?

According to note out of the investment bank, Goldman has reiterated its buy rating with an improved price target of $247.00.

Based on the current Cochlear share price of $218.86, this implies potential upside of 13% for investors over the next 12 months.

Goldman was impressed with the company’s performance, noting that “in a highly challenging year Cochlear delivered +17% NPAT growth to reach the upper-half of the guided range.”

The good news is that the broker is expecting more of the same in FY 2023. It said:

In our view, the backdrop for this year appears relatively more favourable, and we see clear scope for COH to deliver at the upper-end of another solid guidance (+8-13% to $290-305m, with further accretion possible from the Oticon Medical transaction, which is yet to close).

What about the medium term?

The good news for the Cochlear share price is that Goldman Sachs doesn’t expect the company’s growth to stop in FY 2023.

Its analysts believe the company is well-placed to continue this solid form through until at least FY 2025. It explained:

Overall, our NPAT forecast of $301m is at the upper-end of the guided range $290-305m, and we forecast a +10% CAGR from FY22-25E.

And while the broker acknowledges that Cochlear’s shares are not cheap at current levels, it still believes they are good value compared to historic multiples and due to its positive and uncomplicated outlook. The broker said:

Whilst valuation of 28x EV/EBITDA appears high in absolute terms, it is still only in-line with its 5-year average and modestly above its 10-yr. Looking across the other ‘recovery’ plays in our coverage, there is less complexity to COH’s near/mid-term earnings profile, and we believe it will ultimately experience lower and/or shorter-lived margin pressure through the pandemic period than peers.

The post Goldman Sachs tips Cochlear share price to rise 13% appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Why Accent, Cochlear, Newcrest, and Santos shares are charging higher today
• Cochlear share price takes off despite guidance miss
• Cochlear share price in focus as sales revenue surges to record $1.6b
• Earnings preview: Here’s which ASX shares are reporting today

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 positions in and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s already been a bumper ASX reporting season as a swathe of S&P/ASX 200 Index (ASX: XJO) shares have lifted the lid on their results.

But this coming week could be the busiest yet, with a whole host of ASX 200 shares pencilled into our Foolish ASX reporting season calendar.

Tomorrow will see Endeavour Group Ltd (ASX: EDV) post its maiden set of full-year results.

Meanwhile, Qantas Airways Limited (ASX: QAN) and Whitehaven Coal Ltd (ASX: WHC) should drop their FY22 reports on Thursday.

But amidst the flurry of news, there will be some even bigger ASX 200 shares releasing their results.

Without further ado, here are the three largest ASX 200 shares reporting this week.

Coles Group Ltd (ASX: COL)

On Wednesday, investors will be able to sink their teeth into the full-year FY22 results from this ASX 200 supermarket share.

Coles last updated the market in April when it released its third-quarter sales report.

The company delivered 3.9% sales growth, with supermarkets and liquor growth offsetting a decline in Coles Express sales.

Coles noted the third quarter was characterised by unprecedented events, with Omicron and floods disrupting the company’s operations. It also acknowledged cost price inflation was impacting suppliers on the back of increased raw material, commodity, shipping, and fuel costs.

Inflation will likely be the big talking point when Coles reports on Wednesday. Investors will be watching to see how much of the cost increases have been passed on to consumers. And how the current landscape has been impacting demand and purchasing patterns.

There’s no doubt investors will also be eagerly awaiting their dividends. Broker Citi is expecting Coles to declare a final dividend of 32 cents. This would take Coles’ total FY22 dividends to 65 cents, putting shares on a tasty dividend yield of 3.4%.

Woolworths Group Ltd (ASX: WOW)

Coles’ biggest rival will report the day after, with its FY22 results scheduled for release on Thursday.

It will be a similar story for Woolworths, with all eyes on how the ASX supermarket is navigating the current inflationary environment.

Woolies delivered 9.7% sales growth in the third quarter of FY22, with Australian Food sales up 5.4%. A return to COVID-related shopping behaviour underpinned this in the early part of the quarter along with rising food inflation.

The company has also been active on the mergers and acquisitions (M&A) front. It lobbed a bid for formerly ASX-listed Australian Pharmaceuticals Industries at the end of last year.

After that fell through, Woolies set its sights on a new target. To this end, the supermarket giant is now in the final stages of acquiring an 80% stake in online retail marketplace MyDeal.Com Au Ltd (ASX: MYD).

Notably, its FY22 report will be Woolworths’ first full-year result after spinning off Endeavour at the end of June 2021.

Broker Goldman Sachs is forecasting a final dividend of 57 cents per share. This would take Woolies’ FY22 dividends to 96 cents, putting shares on a dividend yield of 2.4%.

Wesfarmers Ltd (ASX: WES)

Last but not least, ASX 200 conglomerate Wesfarmers will round out the week and release its FY22 results on Friday.

While often put in the same basket, Wesfarmers is distinctly different from Coles and Woolies in that it doesn’t operate a chain of supermarkets.

It instead plays around in the retail space, offering products that are more discretionary in nature through its stable of market-leading brands.

As a result, Wesfarmers is more exposed to inflation and rising living costs compared to supermarkets, which sell essential products.

So it goes without saying that inflation will again be a key theme when Wesfarmers hands in its FY22 report on Friday.

COVID lockdowns also rattled the ASX conglomerate during FY22 due to the non-essential nature of some of its retail stores.

With respect to dividends, broker Morgans anticipates Wesfarmers will declare a final dividend of 85 cents on Friday. This would take Wesfarmers’ total FY22 dividends to $1.65, chalking up a dividend yield of 3.4%.

The post Earnings preview: Here are 3 ASX 200 shares reporting this week appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• 2 years on, how close is the Flight Centre share price to its pre-COVID levels?
• Is the Wesfarmers share price in the buy zone ahead of next week’s earnings result?
• ASX reporting season weekly wrap: Winners and losers
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Cathryn Goh 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 positions in and has recommended COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in a subdued fashion. The benchmark index rose by a modest 1.7 points to 7,114.5 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to fall on Monday following a poor night on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 29 points or 0.4% lower this morning. On Wall Street, the Dow Jones was down 0.85%, the S&P 500 dropped 1.3%, and the NASDAQ tumbled 2%.

Oil prices rise

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after oil prices edged higher on Friday. According to Bloomberg, the WTI crude oil price is up 0.3% to US$90.77 a barrel and the Brent crude oil price rose 0.1% to US$96.72 a barrel. However, this couldn’t stop oil prices from recording weekly declines.

NIB results

The NIB Holdings Limited (ASX: NHF) share price will be one to watch on Monday when the private health insurer releases its full year results. According to CommSec, the market is expecting the company to report a net profit after tax of $131 million. This is expected to underpin a final dividend of 9.5 cents per share.

Gold price falls

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a tough start to the week after the gold price dropped on Friday night. According to CNBC, the spot gold price was down 0.6% to US$1,760.30 an ounce. A strong US dollar put pressure on the precious metal last week, leading to five daily declines out of five. This is its longest losing run since November.

Cochlear rated as a buy

The Cochlear Limited (ASX: COH) share price could be heading higher from here according to analysts at Goldman Sachs. This morning the broker has reiterated its buy rating and lifted its price target on the hearing solutions company’s shares to $247.00. Goldman is feeling confident on Cochlear’s outlook, noting that it sees “clear scope for COH to deliver at the upper-end of another solid guidance (+8-13% to $290-305m).”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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More reading

• 2 years on, how close is the Flight Centre share price to its pre-COVID levels?
• ASX reporting season weekly wrap: Winners and losers
• Here are the top 10 ASX 200 shares today
• Is the AGL share price in the buy zone following the company’s latest results?
• Here are the 3 most heavily traded ASX 200 shares on Friday

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 positions in and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Australian share market is home to a number of companies with the potential to grow at a strong rate in the future.

Two such shares that analysts rate highly are listed below. Here’s what you need to know about these ASX shares:

Allkem Ltd (ASX: AKE)

The first growth share that is rated highly is this leading lithium miner.

Allkem, which is the result of the merger of Galaxy Resources and Orocobre, owns a collection of high-quality assets including Olaroz, Mt Cattlin, and the Sal de Vida brine project.

Thanks to strong lithium prices due to growing demand and tight supply, Allkem has delivered significant sales and earnings growth in FY 2022. Pleasingly, this is expected to continue in FY 2023 thanks to ongoing strength in prices, the end of older supply contracts at much lower prices, and increasing production.

Looking further ahead, management intends to grow its production three-fold by 2026 and command a 10% share of global lithium production over the long term. This bodes well for its earnings growth in the future.

Morgans is a big fan of the company. It has an add rating and $16.72 price target on its shares. This compares favourably to the latest Allkem share price of $12.34.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX growth share to look at is this pizza chain operator.

Over the last decade, Domino’s has been growing at a consistently solid rate thanks to the popularity of its offering and the expansion of its footprint.

And while FY 2022 is likely to be a disappointing year due to a number of headwinds, its future remains very positive. Particularly given how it plans to more than double its ~3,000 store network over the next decade in existing markets.

Citi remains positive on the company and recently retained its buy rating and $92.95 price target on the company’s shares. This implies major upside potential from the current Domino’s share price of $70.26.

The post 2 excellent ASX growth shares that analysts say are buys appeared first on The Motley Fool Australia.

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More reading

• Could Porsche’s new test run threaten the outlook for ASX lithium shares?
• Top brokers name 3 ASX shares to buy today
• Here are 3 top ASX growth shares that experts are tipping as buys
• Why are ASX lithium shares having such a cracking start to the week?
• What’s boosting the Allkem share price on Monday?

Motley Fool contributor James Mickleboro has positions in Allkem Limited. 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 Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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What a month it’s been for Core Lithium Ltd (ASX: CXO) shareholders.

After touching a low of 90 cents on 18 July, the ASX lithium producer’s shares rebounded to a record high of $1.665 on Tuesday.

Despite some retracement, the Core Lithium share price is still up by 47.3% in a month, after its shares closed on Friday at $1.40.

Let’s take a look at what’s been driving the company’s shares lately.

Core Lithium shares continue to surge

In mid-July, short bets against the sector were at their highest as economists forecasted a gloomy economic outlook. By 18 July, more than 8% of Core Lithium shares were being shorted.

However, a recent recovery in the market has prompted investors to close on their positions, which is positively impacting the Core Lithium share price.

Last week, the Australian Securities & Investments Commission (ASIC) released its short position report. It revealed that around 5.6% of Core Lithium shares were held in short positions.

Furthermore, an uptick across the lithium sector appears to be supporting Core Lithium shares.

Shares in lithium rivals Lake Resources NL (ASX: LKE) and Liontown Resources Ltd (ASX: LTR) are also up 94% and 63% in a month, respectively.

Core Lithium provided an update on its exploration activities this week, highlighting its progress at the Finniss Lithium Project and Anningie-Barrow Creek Project.

The news drove its shares 9.86% higher at the time.

With the company targeting the first production of spodumene concentrate by the end of 2022, this could bode well for its share price in future.

Core Lithium share price summary

Over the past 12 months, the Core Lithium share price has continued its upward trend to post a 324% gain.

In comparison, the S&P/ASX 200 Materials Index (ASX: XMJ) sector is flat over the same time frame.

Based on today’s price, Core Lithium commands a market capitalisation of roughly $2.42 billion.

The post Why has the Core Lithium share price rocketed 50% in a month? appeared first on The Motley Fool Australia.

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More reading

• Could Porsche’s new test run threaten the outlook for ASX lithium shares?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is the Core Lithium share price careering 5% lower today?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Teboneras 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 Scott Phillips.

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Once upon a time, Novonix Ltd (ASX: NVX) shares were valued at $12.47. However, that was more than eight months ago — in a far different environment to what we know today.

Indeed, the battery technology company joined countless other unprofitable shares which were catapulted to all-time highs amid rampant speculation. Loose monetary policy, in the form of ultra-low interest rates, fuelled such investments into the stratosphere.

Yet, here we are less than a year later with a Novonix share price that is one-quarter of its former glory. Undoubtedly, the ‘cheap money’ tap has been turned off amid the reinstitution of interest rate increases by central banks.

Unremarkably, it’s companies caught without a positive cash flow machine of their own that have suffered the most. Unfortunately for Novonix shareholders, the once high-flying company is a member of that camp.

Cash earner or burner?

Considering profits hold greater importance in this environment, how close is Novonix to profitability? To answer that question, let’s take a look at the company’s latest quarterly activities report.

On 27 July, ASX-listed Novonix served up its accounts for the quarter ending 30 June 2022. According to the release, the battery and materials company collected $2.55 million in receipts from customers. This brought the value over the last 12 months to $9.03 million.

However, staff costs alone consumed $4.52 million in the quarter. Once other costs are added in, such as research and development, admin and the rest, Novonix’s operational cash flow for the quarter finishes up at a $7.96 million outflow.

In short, Novonix chewed through $4.75 million in the last quarter. Fortunately, the company has a considerable stash of cash, sitting at $207.08 million even after the June quarter.

Can Novonix become a profitable ASX company?

No one can predict the future, not even Novonix itself. But what is the game plan for potential future profitability? Well, it comes down to the success of the company’s synthetic graphite.

Ultimately, Novonix needs to scale its production of synthetic graphite over the coming years to increase revenue. If successful, there is some possibility that the business can achieve scale, and revenue will exceed expenses.

However, scaling takes time. At present, Novonix plans to produce 10,000 metric tonnes by 2023. Further plans would see production increase to 40,000 tonnes by 2025 and 150,000 tonnes by 2030.

As a result, ASX-listed Novonix will likely rely on its cash pile to see it through the near term. The Novonix share price is down 76% since the beginning of the year.

The post How close is ASX tech share Novonix to becoming profitable? appeared first on The Motley Fool Australia.

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More reading

• Why did the Novonix share price nosedive 6% today?
• Is Novonix considered an ASX lithium share?
• Novonix share price tumbles 6% on Friday. What’s going on?
• Here are the top 10 ASX 200 shares today
• Why is the Novonix share price leaping 11% on Thursday?

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 Scott Phillips.

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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Mineral Resources Limited (ASX: MIN)

According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this mining and mining services company’s shares to $76.00. The broker has become even more bullish on the company due to its belief that lithium prices will be higher for longer. This has led to Citi upgrading its earnings estimate materially for the coming years. And with Mineral Resources expected to provide an update on its lithium operations with its results next week, the broker suspects that consensus earnings estimates may need to be bumped higher. The Mineral Resources share price ended the week at $60.90.

Redbubble Ltd (ASX: RBL)

A note out of Morgans reveals that its analysts have retained their add rating but cut their price target on this ecommerce company’s shares to $1.65. The broker notes that Redbubble’s shares were sold off after its full year results following concerns about elevated operating expenses. While this is disappointing and the broker has adjusted its forecasts and valuation to accordingly, it still sees plenty of value in its shares at the current level. The Redbubble share price was fetching 93 cents at Friday’s close.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Macquarie have upgraded this wine giant’s shares to an outperform rating with an improved price target of $15.00. This follows the release of a solid full year result for FY 2022 that was ahead of expectations. Macquarie was impressed with the success of Treasury Wine’s premiumisation of its portfolio and its transition away from China. This has led to the broker lifting its earnings estimates. It is now forecasting solid growth in the coming years. The Treasury Wine share price ended the week at $13.42.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• ASX reporting season weekly wrap: Winners and losers
• Treasury Wine share price celebrates Friday with a more than two-year high
• Could these devastated ASX shares make a roaring comeback?
• Here are the top 10 ASX 200 shares today
• Why CSL, IPH, Renascor, and Treasury Wine shares are pushing higher

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 positions in and has recommended REDBUBBLE FPO. The Motley Fool Australia has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As its name might suggest, the Flight Centre Travel Group Ltd (ASX: FLT) share price was one of the worst-hit ASX 200 shares when the COVID-19 pandemic hit back in 2020.

With the rapid and unexpected shutdown of essentially the entire global travel industry, Flight Centre shares were never going to come out the other side of the pandemic (if we can call it that) unscathed.

But now we are more than halfway through 2022 and more than two years out from the start of the pandemic, how close is the Flight Centre share price to its pre-COVID levels?

Well, let’s journey back through the mists of time and take a look.

How is  Flight Cente share price cruising post-COVID?

So, back in February 2020, Flight Centre shares were flying high at around $35.50. But with the onset of the pandemic, investors were swift and brutal. Between 21 February and 19 March, Flight Centre shares fell a crippling 75% or so, bottoming out at just under $9.

The company was forced to suspend its shares from trading at the end of March to shore up capital. In early April, the company announced a massive $700 million capital raising program to keep its doors open. In this it was successful, but it resulted in massive share dilution for investors.

The Flight Centre share count almost doubled as the company raised money at a steep discount to what its shares were worth just a few months earlier.

Today, Flight Centre is going for $17.81 a share at the time of writing. That might be almost 100% up from the lows that the company hit in late March of 2020. but it’s still down around 30% from Flight Centre’s current 52-week high of $25.28 a share that we saw in October last year.

It’s also down an even more painful 50% or so from its pre-COVID levels.

What do the brokers say?

Flight Centre shares might not get anywhere close for a while yet, if ASX broker opinion is to be believed.

As my Fool colleague Tristan covered this week, most ASX brokers currently give Flight Centre shares either a neutral or a sell rating at present.

One broker in UBS is neutral, with a 12-month share price target of $18.65. But Ord Minnet is among the more bearish brokers. It is far less optimistic about the Flight Centre share price with its sell rating and share price target of just $13.18.

The post 2 years on, how close is the Flight Centre share price to its pre-COVID levels? appeared first on The Motley Fool Australia.

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More reading

• ASX reporting season weekly wrap: Winners and losers
• Here are the top 10 ASX 200 shares today
• Is the AGL share price in the buy zone following the company’s latest results?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Is this ASX 200 share ESG-challenged or a recession-proof buy?

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 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 Scott Phillips.

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