Analysts raise EBITDA forecast for Australia's Webjet

Web Travel

17/11/2022 19:46

** Analysts from Citi raise their earnings before interest,
tax, depreciation and amortisation for FY23 by 5% for
Australia's Webjet  WEB.AX , see underlying EBITDA of A$128 mln
($85.54 mln) for the financial year 
    ** The travel co posted HY revenue of A$175.8 mln, as
compared with A$55.2 mln a year earlier, due to a turnaround in
travel conditions and higher domestic travel demand  urn:newsml:reuters.com:*:nL4N32C4BC
    ** Citi says trends showing travel recovery plus strong
performance in both business-to-business and
business-to-consumer segments driven by growth in bookings and
margin strength can offset macroeconomic concerns 
    ** Similarly, Morningstar raises co's EBITDA forecasts by
average of about 3% for next three years, estimating a 2024
fiscal EBITDA to be A$173 mln  
    ** The broker also says Webjet will exceed pre-pandemic
operating earnings by fiscal 2024
    ** Citi raises PT on stock to A$7.20/shr from A$6.48,
reiterates "Buy" rating, whereas Morningstar hikes its fair
value estimate to A$6.30 per share while maintaining a "High"
uncertainty rating 
    ** Nine of 15 analysts rate stock "buy" or higher, 3 "hold"
and 2 "sell" or lower; median PT is A$6.50 – Refinitiv data
    ** Stock has risen 19.7% this year, as of last close
($1 = 1.4963 Australian dollars)
 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))