Morgan Stanley reduces B2B forecasts for FY20 by -18%. After a softer performance from JacTravel and earnings downgrades at Thomas Cook, which resulted in a decline in the share price of over -70%, the broker envisages downside risk to previous numbers.
The broker’s believes FY19 guidance is light versus expectations and, therefore, most likely achievable. Meanwhile B2C is considered solid but not immune to pressures.
Equal-weight. Target is reduced to $12.70 from $14.20. Industry View is In-Line.
Target price is $12.70.Current Price is $12.38. Difference: $0.32 – (brackets indicate current price is over target). If WEB meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).