I don't see how Webjet is going to get back to its pre-COVID business for shareholders in the short-medium term. Keyword here is for shareholders.
Pre-COVID / 2019, WEB was making $0.47 EPS.
At the current shares outstanding of 339m shares, they would need to generate over $159m in NPAT. That is over 2.5x their NPAT pre-COVID. WEB is nowhere near even getting back to their pre-COVID levels let alone increasing it by 2.5x.
Based on the share price, investors are thinking this COVID-thing is going away soon. "We just have to wait for the vaccine, etc, etc". The best proxy IMO on when travel is coming back is 9/11. It took the airline industry four years to get back to pre-9/11 levels.
WEB Price at posting:
$4.73 Sentiment: Sell Disclosure: Not Held
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