STREET VIEW: Analysts upbeat on Australian travel firm Webjet's WebBeds unit

Web Travel

22/03/2024 01:20

** Travel bookings provider Webjet  WEB.AX  said on Thursday
its WebBeds business on track to achieve total transaction value
(TTV) of A$4 bln ($2.63 bln) in FY24 and A$5 bln in FY25
    ** Webjet said this at its 2024 Strategic Investor Day for
WebBeds, a marketplace for travel trade, typically providing a
space for selling and buying accommodation 
    ** WEB shares down 1.1% at A$8.595, as of 0039 GMT, after
hitting their highest since Feb 24, 2020 on Thursday
          
    SEES WEBBEDS TTV OF A$10 BLN IN FY30 WITH 50% EBITDA MARGIN
    
    ** Citi ("buy", PT: A$9.90) says Americas and APAC will be
key regions of focus for new customers on WebBeds with material
opportunity through investment in technology
    ** Macquarie ("neutral", PT: A$8.88) raises earnings per
share forecasts for FY24, FY25 and FY26 by 4%, 7% and 7%,
respectively
    ** Morgan Stanley ("equal-weight", PT: A$7.45) says, "in
short, stronger TTV growth, lower take-rates. Net tailwind for
near-term earnings."
    ** Jefferies ("hold", PT: A$8.60) says it is pleasing that
WebBeds' TTV growth is all organic with no hint that some will
be via mergers and acquisitions 
    ** Morningstar ("No-moat", PT: A$6.80) says investments made
to increase technological capabilities generate scalability
benefits as travel activities return to pre-pandemic numbers
    
    ($1 = 1.5218 Australian dollars)

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