Webjet a preferred pick in recovery trade - Citi

Web Travel

06/09/2022 01:58

** Citi says it is comfortable that Australia's travel co
Webjet Ltd  WEB.AX  will be able to convert strong total
transaction value (TTV) to revenue and EBITDA as hotels
outperform with elevated pricing and volumes
    ** Maintains "buy" rating and PT at A$6.48; says the hotel
segment is the place to be in the travel environment
    ** Brokerage, however, revises down its ahead-of-consensus
expectations by 2%-3% for FY23-25 at the EBITDA line on offsets
from FX translation
    ** Says Trip Ninja acquisition makes a lot of sense and sees
competitive advantage and a differentiated product which cannot
be replaced by other OTAs
    ** Sees co's pathway to majority of its business being
differentiated to direct airline bookings, increasing the value
proposition of co's booking fee
    ** Seven of 13 analysts rate the stock "buy" or higher; four
"hold"; and "two" sell or lower; their median PT is A$6.28 –
Refinitiv data
    ** Stock has risen 1.7% this year
    
($1 = 1.4686 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))