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