Morningstar bullish on Webjet's FY2024 outlook despite macroeconomic headwinds

Web Travel

20/09/2023 23:35

** Brokerage Morningstar expects travel firm Webjet  WEB.AX 
to deliver strong fiscal 2024, if trading conditions remain
positive
    ** Brokerage forecasts EBITDA to increase 40% to A$182 mln
    ** Company on track to deliver on three-year EBITDA compound
annual growth rate projection of 22%, reaching A$231 mln in
fiscal 2026, from A$127 mln in fiscal 2023 - Morningstar
    ** Brokerage says it prefers to focus on Webjet's
longer-term maintainable earnings, as it normalises to
pre-pandemic levels from the post-pandemic boost
    ** "On WebBeds, which generates almost 70% of group revenue,
there is near-term growth momentum and the demand backdrop
remains positive" - Morningstar
    ** Brokerage expects ongoing dividends to be paid from
sometime in fiscal 2025, at a payout ratio of around 50%,
similar to historical average, as conditions improve
    ** Stock up 8.4% this year, as of last close

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com))