AFR confirms multiple bidders interested in WEB, page-62

Amazing these analysts can use a single quarter data point from a competitor (of sorts) and extrapolate out 3 years for WEB.

23 MINUTES AGO | 12.26PMGoogle threat fuels Webjet dive

Google’s push into the travel booking industry is putting Webjet revenue at risk, according to Morgan Stanley.

In a note to clients the broker notes disappointing third quarter earnings for Expedia and TripAdvisor which both cited Google as a contributing factor.

“We identify Webjet’s B2C business as most at risk from a similar trend playing out in Australia,” analysts led by James Bales write.

“We expect revenue leakage, marketing cost growth and ultimately multiple compression.”

They project total transaction volumes and revenue headwinds will result in a 4pc earnings per share downgrade in FY21, accelerating to 8pc in FY22 then 13pc in FY23.

“We think the implications for WEB are material, especially given M&A speculation and strategic review, where valuation comes sharply into focus,” they add.

WEB is leading the market’s worst performers at midday, last down 10pc to $12.89.