Leisure & Tourism

Michael Gable of Fairmont Equities suggests Flight Centre is technically neutral at present but strong support exists on any drop.

Ardent Leisure delivered robust FY14 results. Brokers are quietly confident in the growth outlook and Main Event expansion.

Central banks buy gold; new bank accounting standard; Aussies still like travelling; Primary Health Care sets up IVF clinic; and tough times ahead for retailers.

Webjet has acquired SunHotels, which brokers consider is important for the company’s long-term outlook.

Australian domestic tourism is soggy, TV advertising is subdued, retailing is disappointing, and credit growth is soft but there has been a bump up in gold prices.

Low inflation is a problem for some countries; Oz tourism is stagnant; opportunities in gambling are very stock specific; New Zealand’s residential building boom continues.

Travel stocks, discretionary retailers and housing-related retailing are all looking much more positive but brokers are still being selective.

Wotif.com has downgraded earnings forecasts as it is hit by increased competition, higher costs and a subdued domestic market.

Flight Centre has demonstrated earnings resilience and is still impressing brokers with its business model.

Modest domestic housing recovery, NBN squeeze on small telco margins, bank dividends look safe and leisure providers welcome lower Aust dollar.