Shares of Flight Centre Travel Group Ltd (FLT.AU) soared 8.02% during intraday trading on Friday, marking a significant upward movement for the travel retailer.
The surge follows Morningstar expressing confidence in the company's longer-term earnings growth potential. The investment research firm highlighted incremental improvements in productivity measures and growing new revenue streams in both leisure and corporate travel segments as key drivers for future performance.
Morningstar maintained its fair value estimate of A$18.50 for FLT and viewed current market turbulence, including impacts from Middle East tensions on early Q4 results, as temporary. This analyst optimism appears to have bolstered investor sentiment, contributing to the stock's strong intraday performance.