Browse
Log in / Register
Share
Date: April 9, 2026
Investors hunting for value in the ASX growth space are often torn between two high-conviction names: Flight Centre Travel Group Ltd (ASX: FLT) and CAR Group Limited (ASX: CAR). While both have delivered strong rebounds since the post-pandemic era, their 2026 trajectories look markedly different. FLT shares have slipped about 8.7% since the start of 2025, while CAR shares are trading roughly 35% below their 52-week high. Here’s a refreshed look at the fundamentals, recent catalysts, and what the Street is saying about each.
Flight Centre’s core differentiator—personalized human service—remains its moat in an increasingly automated travel booking landscape. After a stellar 2023–2024 recovery, the company has faced headwinds from rising airfares and cautious consumer spending. Yet recent data from the International Air Transport Association (IATA) shows global passenger traffic grew 8.4% year-on-year in the first quarter of 2026, suggesting travel demand is still expanding.
Latest catalyst: In February 2026, Flight Centre announced a strategic partnership with a major hotel chain to offer exclusive loyalty perks to corporate clients. This move could widen its margins in the lucrative business travel segment.
Financial snapshot: Over the three years to FY24, FLT grew revenue at a compound annual rate of 89.8% to $2.7 billion, climbing from a loss of $433 million to a net profit of $140 million. Its return on equity (ROE) stood at 11.9% in FY24. For the trailing twelve months ending December 2025, consensus estimates point to revenue of approximately $3.2 billion and net profit of $240 million, implying a forward P/E of around 18x.
Analyst view: According to a recent note from Morgan Stanley (April 2026), FLT is rated “Overweight” with a target price implying 22% upside. The analyst cited strong booking momentum in Asia-Pacific and expanding corporate travel budgets.
CAR Group, best known for its Australian carsales platform, has expanded into South Korea (Encar), the United States (Trader Interactive), and Chile (chileautos). The company generates recurring revenue from dealer subscriptions and advertising, giving it a high-margin, scalable business model.
Latest catalyst: In March 2026, CAR Group announced the acquisition of a minority stake in a leading Vietnamese auto marketplace, signaling its intent to enter Southeast Asia’s rapidly motorizing market. The deal is expected to be earnings neutral in the first year but accretive by FY28.
Financial snapshot: Over the three years to FY24, CAR grew revenue at a 37% CAGR to $1.1 billion, with net profit advancing from $131 million to $250 million. Its ROE was 8.6% in FY24. For the trailing twelve months to December 2025, analysts estimate revenue of $1.4 billion and net profit of $330 million, giving a forward P/E of roughly 27x.
Analyst view: Goldman Sachs upgraded CAR to “Buy” in early 2026, raising its price target to 15% above current levels, noting that the company’s digital advertising revenue is growing faster than the broader online auto market, and that its U.S. operations are on track to turn EBITDA-positive by mid-2027.
| Metric | FLT | CAR |
|---|---|---|
| Revenue CAGR (3yr) | 89.8% | 37.0% |
| Net profit growth (FY21–FY24) | —$433M → $140M | $131M → $250M |
| ROE (FY24) | 11.9% | 8.6% |
| Forward P/E (TTM Dec 2025 est.) | ~18x | ~27x |
| Dividend yield | 2.1% | 1.5% |
| Debt-to-equity | 0.4x | 0.7x |
FLT offers a more cyclical recovery story with a lower valuation and a clearer path to earnings normalization. If travel demand holds up through 2026, the stock could re-rate significantly. However, its margin is sensitive to fuel costs and consumer confidence.
CAR Group provides a more durable, subscription-like model with strong international optionality. The higher multiple is justified by recurring revenue, but the stock requires patience as the U.S. and Vietnam expansions take time to mature.
For value-oriented investors looking for a bargain, FLT’s recent dip may present a more compelling entry point. For those willing to pay up for quality and compounding, CAR remains a solid long-term core holding.
Bottom line: Both stocks deserve a spot on your watchlist, but the right choice depends on your risk tolerance and time horizon. As always, consider diversification and consult a financial advisor before making any investment decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results.
