Once NPAT is back at $60m, a PE of 40 is suitable considering thr growth rate of over 20% in revenue ajd ebitda. That gives a market cap of $2.4bn. I have invested on the basis that once it is clear WEB will get to its pre covid figures the SP will be atleast 80% of the 2.4bn market cap - this equates to a SP of $5.6. For this to happen a successful covid vaccine needs to be announced (but not administered to the masses) and there needs to be somewhat of a guarantee that WEB will not need additional money before the vaccine has been widely distributed. I am expecting a successful vaccine to be announced before the end of the year with wide distribution in Australia in early 2021. My PT is therefore 5.80 by March 2021 but this could be achieved a few months earlier or later. I will be very surprised if even a single vaccine hasn't passed stage 3 by end of 2020.
WEB Price at posting:
$3.64 Sentiment: Hold Disclosure: Held
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