Flight Centre, Corporate Travel, Web Travel Group dive on ASX
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The news: Travel groups Flight Centre, Corporate Travel Management and Web Travel Group all lowered on the ASX after investors responded to softening trading outlooks this week.
The numbers: Flight Centre (-19.6%) and Corporate Travel (-7.8%) were the two worst performing stocks across the ASX 200 by 2:30pm AEDT. Web Travel Group, down 3.9%, was also in the top 10 ASX 200 worst performers.
These losses dragged the consumer discretionary sector down 2.06%, as the wider ASX 200 fell 1.1%.
The context: UBS analysts called Flight Centre's Q1 trading update "subdued". They noted global corporate sector activity was flat during the quarter, while trading was adversely impacted by airfare deflation and downtrading in some large accounts.
Earlier this week, Web Travel Group flagged ongoing subdued margins in Europe for its wholesale bookings business WebBeds. UBS retained its 'buy' rating on the stock but slashed its price target from $10 to $5.60 as it removed its consumer business Webjet, due to the demerger, and noted continuation of softer conditions in Europe.
The source: UBS research
