Analysts raise PT on Australia's Webjet after demerger plans, strong FY results

Web Travel

22/05/2024 22:50

** Analysts at Citi and Jefferies raise PT on travel company
Webjet  WEB.AX  after it posted 84.5% jump in FY profit and
unveiled a demerger plan 
    ** Co said it was exploring the demerger of its two leading
divisions - B2B wholesale division WebBeds and Webjet B2C
    ** Citi raises PT to A$10.7 from A$9.90, increases its NPAT
estimates by ~2% across FY25-FY26 
    ** Says the result was strong, demonstrating plenty of
market share gains in a favourable macro environment
    ** Jefferies raises PT to A$9.00 from A$8.90
    ** Brokerage says split of the businesses has been of market
interest for a while now and believes there is strong potential
upside for the B2B business if the demerger goes ahead
    ** This potential demerger may also pique the interest of a
potential buyer for either segment - Jefferies
    ** As of last close, stock up 23.8% YTD

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))