The Flight Centre Travel Group Ltd (ASX: FLT) share price has jumped 11% to $49.25 today, after the company released its annual results.
Shares have rocketed as investors saw the strengthening second half, as well as management's target of 7% total transaction volume (TTV) growth over the next 3 years. Flight Centre is also targeting an increase in profit before tax margins to 2% of TTV, up from 1.64% this year. That would reflect a ~20% increase in overall profitability, if achieved.
Speaking for myself, although I am a shareholder, I'm not buying more shares in Flight Centre today. I think the recent run up in its share price has meaningfully reduced the returns on offer and as a result, I'd call it a hold.
