BUZZ-Webjet a preferred pick in recovery trade - Citi 06 09 2022...

BUZZ-Webjet a preferred pick in recovery trade - Citi

06 09 2022 10:58am AEST

** Citi says it is comfortable that Australia's travel co Webjet Ltd will be able to convert strong total transaction value (TTV) to revenue and EBITDA as hotels outperform with elevated pricing and volumes
** Maintains "buy" rating and PT at A$6.48; says the hotel segment is the place to be in the travel environment
** Brokerage, however, revises down its ahead-of-consensus expectations by 2%-3% for FY23-25 at the EBITDA line on offsets from FX translation
** Says Trip Ninja acquisition makes a lot of sense and sees competitive advantage and a differentiated product which cannot be replaced by other OTAs
** Sees co's pathway to majority of its business being differentiated to direct airline bookings, increasing the value proposition of co's booking fee
** Seven of 13 analysts rate the stock "buy" or higher; four "hold"; and "two" sell or lower; their median PT is A$6.28 – Refinitiv data
** Stock has risen 1.7% this year
($1 = 1.4686 Australian dollars)