Flight Centre Travel's trading update was welcomed by Ord Minnett as it contained the most detailed disclosure from the company in more than 10 years. Underlying EBITDA guidance has increased to $270-290m.

It appeared to the broker the main theme in the update was a focus on building lower margin revenue streams from a range of sources. While not necessarily negative, Ord Minnett assesses building online bookings would likely have limited earnings upside in the medium to longer term.

The business continues to experience declines in its revenue margin, which occurred even before the pandemic, and the broker is sceptical the trend will change materially going forward. Lighten maintained. Target is steady at $17.39.

Sector: Consumer Services.

Target price is $17.39.Current Price is $21.13. Difference: ($3.74) - (brackets indicate current price is over target). If FLT meets the Ord Minnett target it will return approximately -22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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