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Why Webjet Is Up Over 7% Today?

Jordan Baird

Jordan Baird is the head ASR Wealth Advisers client services desk and has been with the organisation since 2017. He first started investing in his early years. While he believes that investors should leave no stone unturned he has a particular interest in trading based on broad macroeconomic trends along with specific analysis of innovative up-and-coming companies.

Webjet Limited (ASX: WEB) opened up 5.5% this morning and has continued to soar even higher, making it the best-performing stock on the ASX200 so far today. Webjet is an online travel business spanning consumer and wholesale markets internationally.

Webjet - up 7%
Webjet (ASX: WEB) is up over 7% today and is continuing to rise. The soar comes as a result of the release of its annual general meeting presentation, ahead of its event in Melbourne. (Credit: ShareCafe).

The company’s head office is located in Melbourne but conducts operations in Australia, New Zealand, North America, Singapore and Hong Kong.

Webjet Limited’s share price rocketed as a result of the release of the company’s annual general meeting presentation, which included a breakdown of FY19 results and indicated a positive start to FY20. Managing Director John Gusicic outlined that the company has seen TTV, revenue and EBITDA growth in all regions, which comes as a relief to investors given the tough conditions of travel markets.

The presentation also outlined a performance outlook for FY20. Gusicic indicated that first half underlying EBITDA is expected to be at least $80 million (a 38% increase from the same period last year). Whilst full year underlying EBITDA (excluding one-off revenues and costs) is expected to be between $157 million and $167 million (growth of 26% to 34% when compared to FY19).

The recent share price increase provides Webjet investors with relief after a less than stellar start to FY20, with the share price falling over 15% so far, this financial year. With the outlook of FY20 looking as positive as it does, combined with an offering of a fully franked dividend yield of 1.66%, a P/E ratio of 28.32 and 24% share price growth this month alone, Webjet (ASX: WEB) appears to be a good buy for investors looking to enter the travel market.

 


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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