Webjet: COVID well and truly in the rear-view mirror

About the author:

Belinda Moore
Author name:
By Belinda Moore
Job title:
Senior Analyst
Date posted:
23 November 2023, 7:00 AM
Sectors Covered:
Agriculture, Food & Beverage, Travel and Chemicals

  • Webjet (ASX:WEB) reported a strong 1H24 result which beat expectations. The performance from WebBeds which posted a record result (bookings are 50% ahead of pre-COVID levels), its industry leading margins and strong operating cashflow were the highlights of the result.
  • Outlook commentary was upbeat, however the war has had an impact on bookings in the last six weeks. FY24 EBITDA guidance was in line with our forecast however if the impact from the war is short lived, it could prove conservative.
  • With plenty of market share still to win, we maintain an Add rating on this high quality growth stock. Based on our forecasts, WEB is trading on a FY25F PE of 15.8x, which is materially below its five-year average PE (pre-COVID) of 20.6x.

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