The Flight Centre Travel Group Ltd (ASX: FLT) share price has been a stellar performer in 2023.
Since the opening bell on 3 January, shares in the S&P/ASX 200 Index (ASX: XJO) travel stock have soared 56%, currently trading for $22.37 apiece.
But despite that huge boost this year, the Flight Centre share price remains down 36.7% from the $35.54 a share it was commanding on 21 February 2020, right before the pandemic fuelled market crash.
That crash saw the ASX 200 travel stock plunge a precipitous 75%, falling all the way to $8.92 a share on 19 March 2020.
While it's clawed back much of those losses, can the Flight Centre share price ever fully recover from its bout with COVID?
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Can the Flight Centre share price fully shake off its COVID hangover?
A number of brokers are positive on the outlook for the travel company. Though I'm not aware of any with one-year price targets north of $35.54.
Macquarie has a neutral rating on Flight Centre shares, with a price target of $23. That's about 3% above the current price, but still well below its pre-COVID levels.
Wilsons has a buy rating with a 12-month price target of $26.40 a share.
And Ord Minnet also has a buy rating with a price target of $26.75 a share. That's 20% above the current price, but still 25% below the pre-pandemic levels.
So, Flight Centre stock might not leap back above $35.54 over the coming 12 months.
But can it ever get back there?
ECP Asset Management highlights that operational efficiency and the ability of companies to change are critical to business resilience.
"Streamlining operations enhances productivity while streamlining costs," ECP noted.
"By boosting overall efficiency and productivity, these measures position businesses for market share gains and expedited growth," the asset manager said.
As for the outlook for the Flight Centre share price, ECP said:
Flight Centre has streamlined operations amid the pandemic, reducing physical stores and staff numbers significantly.
This focus on cost efficiency and productivity has fortified their competitive stance, paving the way for client growth and expected margin expansion.
So, investors who held shares in the ASX 200 travel stock prior to the pandemic may yet find themselves back in the money. In time.
Flight Centre reports its financial results on 30 August.
