BUZZ-Morningstar flags about 40% drop in Australia's WEB Travel shares after demerger

Reuters
04-02
BUZZ-Morningstar flags about 40% drop in Australia's WEB Travel shares after demerger

** Morningstar analyst says shares of Australia's WEB Travel WEB.AX are down about 40% since demerging the retail consumer unit Webjet in late September 2024

** Notes that shares in the business to business (B2B) travel distribution firm are 25% below Morningstar's unchanged A$6 fair value estimate

** Investment research firm projects FY underlying EBITDA of A$115 mln ($72.02 mln), below co's forecast of A$117 mln-A$122 mln

** Morningstar says culprits for the near-term earnings hit are mostly transitory

** Sentiment is likely to take time to recover, having turned from a liberated "growth" company to one nursing an earnings hemorrhage against an uncertain economic backdrop - Morningstar

** Stock down marginally so far this year

($1 = 1.5967 Australian dollars)

(Reporting by Sneha Kumar in Bengaluru)

((Sneha.Kumar@thomsonreuters.com;))

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