Hot Stocks – Flight Centre and Westpac

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In hot stocks this week Julia Lee of Bell Direct likes Flight Centre. She believes that Flight Centre is in the midst of an upgrade cycle, driven by a structural upcycle in international visitors, cost discipline and a rising Australian dollar.

“A rising $A should help its key Australian business, which has dragged on performance,” she says.

“While there are risks, given relatively high multiples and a new system rollout in Australia, a result on the upper end of guidance for the first half of profit before tax of $120-135 million should provide comfort that, not only are cost initiatives and productivity helping results, but demand is stronger than what the market has priced in.”

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