The Flight Centre Journey Group Ltd (ASX: FLT) share value is buying and selling decrease on Tuesday regardless of some constructive information out of the journey agent large.
On the time of writing, the Flight Centre share value is down over 1% to $16.84.
What did Flight Centre announce?
This afternoon Flight Centre supplied an replace on its UK COVID-19 mortgage and funding.
In keeping with the discharge, Flight Centre has been accredited to increase the short-term 65 million kilos mortgage it acquired final yr below the Financial institution of England’s COVID Company Financing Facility (CCFF).
These funds had been had been initially made accessible for 12 months to help short-term liquidity as the corporate labored to beat the disruption attributable to COVID-19 and the restrictions that had been utilized to gradual the unfold of the virus.
This time period was as a result of finish in March 2021, nonetheless, the Financial institution of England has now accredited a 12-month extension via to March 2022.
Along with this, the central financial institution has made an extra 50 million kilos debt facility accessible via to March 2022.
Final month the corporate revealed that it had liquidity of $1.2 billion at December 31. This consists of the preliminary 65 million kilos mortgage however not the addition 50 million kilos debt facility.
Flight Centre’s Managing Director, Graham Turner, commented: “Whereas some constructive indicators are rising, the journey, tourism and aviation industries nonetheless face important challenges whereas widespread journey restrictions are in place. We thank the Financial institution of England for its ongoing and proactive help, which can assist companies save jobs and climate the near-term challenges.”
Is the Flight Centre share value within the purchase zone?
One main dealer that sees worth within the Flight Centre share value is Macquarie.
In keeping with a notice out of funding financial institution final week, its analysts upgraded the corporate’s shares to an outperform score with an improved value goal of $20.00.
Based mostly on the present Flight Centre share value, this suggests potential upside of 19% over the subsequent 12 months.
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Motley Idiot contributor James Mickleboro has no place in any of the shares talked about. The Motley Idiot Australia has beneficial Flight Centre Journey Group Restricted. The Motley Idiot has a disclosure coverage. This text comprises basic funding recommendation solely (below AFSL 400691). Authorised by Bruce Jackson.