Citi sees Australia's Webjet as a relative leader in re-opening stock earnings

Web Travel

12/04/2022 20:18

** Brokerage Citi upgrades to a "Buy" rating on Australian
travel company Webjet Ltd  WEB.AX , but retains price target at
A$6.50  
    ** Citi says WEB's B2B travel unit (B2B) that provides
accommodation and ground services should return in a stronger
position with an American growth leg, lower costs, and a better
industry position
    ** Says WEB's B2C travel unit (B2C) that operates brands in
complementary travel products has the opportunity to pick up
share as the number of domestic carriers increases  
    ** Sees leakage in business amid an uptick in online
bookings as WEB transitions online, expects co's online travel
aggregator strategy to pick up
    ** Citi decreases FY22 earnings estimate by 32% on Omicron
worries, however, increases co's FY23/24 B2B earnings estimates
on a more optimistic US
    **Looking out however to a normalized FY24, we see +9% NPAT
upgrades- Citi
    ** Four of 11 analysts covering the stock rate it "buy" or
higher, six "hold" and one "sell" or higher; their median PT
being A$5.80 – Refinitiv data
    ** Stock has risen 2.5% this year, as of last close, vs a
0.1% increase in the benchmark S&P/ASX 200 index  .AXJO  


 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))