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Webjet shares maintain hold rating on strong performance

EditorNatashya Angelica
Published 07-05-2024, 10:04 pm

On Tuesday, Webjet Limited (WEB:AU) (OTC: WEBJF), an online travel agency, maintained its Hold rating by Jefferies with a steady stock price target of AUD8.60. The affirmation follows the first-quarter report of a competitor, which indicated strong performance in the business-to-business (B2B) segment. This segment's growth is seen as a positive indicator for Webjet's upcoming financial results.

The competitor, which reported on Friday, experienced a 25% revenue growth in its B2B segment for the first quarter of 2024, building on a 33% increase for the full year of 2023.

Despite the overall mixed reception of the results, the B2B area showed a slight improvement in margins compared to the previous corresponding period. The company expressed confidence in its leadership position within the B2B space and its continued potential to gain market share.

Jefferies anticipates that this performance bodes well for Webjet's fiscal year 2024 results, which are scheduled to be announced on May 22. The firm's expectations for Webjet's WebBeds division, which is the company's largest segment, include a 17% revenue growth in the second half of 2024, following a 50% increase in the first half.

The positive developments reported by the competitor are seen as an upside risk to Webjet's major segment, suggesting that there may be potential for Webjet's performance to exceed Jefferies' current projections. The travel industry has been closely monitoring the recovery and growth patterns post-pandemic, with B2B segments playing a crucial role in this trajectory.

Investors and market watchers are now looking ahead to Webjet's announcement in May to see if the company can indeed capitalize on the opportunities within the B2B travel sector and deliver on the growth expectations set forth by industry analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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