Morgan Stanley reduces estimates for operating earnings (EBITDA) by -6-7% for FY20. This reflects adjustments for Thomas Cook and Amoma, both having permanently ceased operations. The broker notes a significant hit in terms of receivables, which will be written down to zero.
Given the company has historically guided conservatively, the broker does not anticipate a significant positive impulse from the AGM. Equal-weight rating maintained. Target is reduced to $12.40 from $13.80. Industry View is In-Line.
Sector: Retailing.
Target price is $12.40.Current Price is $10.77. Difference: $1.63 – (brackets indicate current price is over target). If WEB meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
