Webjet (ASX:WEB) recently reported a robust 1H24 result that surpassed expectations. In this analysis, we delve into the highlights of the report, including the exceptional performance of WebBeds, industry-leading margins, and strong operating cash flow.

Performance Highlights

The standout performer in the 1H24 result was WebBeds, which achieved record bookings, surpassing pre-COVID levels by 50%. Additionally, the company showcased industry-leading margins and demonstrated strong operating cash flow, indicating a healthy financial position.

Outlook Commentary

While the outlook commentary was upbeat, recent geopolitical events have impacted bookings over the last six weeks. Despite this, FY24 EBITDA guidance aligns with our forecasts. However, if the impact from the ongoing events is short-lived, it could potentially prove conservative.

Investment Insights

With significant market share still up for grabs, we maintain an Add rating on Webjet, considering it a high-quality growth stock. Based on our forecasts, WEB is currently trading at a FY25F PE of 15.8x, which is notably lower than its five-year average PE (pre-COVID) of 20.6x.

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

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News & Insights

Explore Webjet's (ASX:WEB) robust 1H24 report and optimistic outlook despite recent challenges. Discover how record bookings and strong cash flow position the company for growth. With ample market share opportunities, learn why Webjet is a compelling investment choice.
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