Flight Centre Travel Group's (ASX:FLT) positive trend in the second quarter after a soft first quarter could result in an upside to near-term earnings per share and the company's valuation, Jarden Research said in a Nov. 14 note.

For fiscal 2025, Flight Centre Travel Group is targeting an underlying profit before tax (PBT) of AU$365 million to AU$405 million.

The company acknowledges that its 2% PBT margin target for fiscal 2025 is unlikely to be achieved, although it remains a medium-term goal.

"While Q1 was disappointing, a marked improvement in Q2 (to date) as airfares [stabilize] and confidence lifts gives us confidence trends should continue to improve through fiscal 2025," the investment firm said.

If the positive trends continue, there is increased confidence that the company could achieve its 2% PBT margin sooner than Jarden's fiscal 2028 target, the investment firm added.

Jarden believes that achieving the 2% PBT margin sooner would lead to material upside to both near-term EPS and Flight Centre Travel Group's valuation, potentially rising above AU$26 per share.

Jarden Research maintained its buy rating on the stock but lowered its price target to AU$23.10 from AU$23.70.

Flight Centre Travel Group's shares were down almost 1% in recent Wednesday trade.

Price (AUD): $17.38, Change: $-0.10, Percent Change: -0.57%