Travel demand has slumped sharply and there are high levels of uncertainty over the next 6-12 months. Hence Webjet has withdrawn FY20 guidance.
Still, UBS considers the business displays higher quality characteristics versus the broader travel market, with a history of above-market growth and a strong balance sheet.
The company has initiated further cost controls, generating $10m in savings for the remainder of FY20. UBS maintains a Buy rating and reduces the target to $18.00 from $19.50.
Sector: Retailing.
Target price is $18.00.Current Price is $6.92. Difference: $11.08 – (brackets indicate current price is over target). If WEB meets the UBS target it will return approximately 62% (excluding dividends, fees and charges – negative figures indicate an expected loss).
