WEBJET GROUP LIMITED (WJL)
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22/05/2025

3

Hold

$0.90

Morgans observes Webjet Group's FY25 result was in line with expectations, with higher margins and a strong balance sheet the highlights, but the mix was of poor quality. The broker notes downside risks remain for FY26.

The focus, however, is on interest in the company from two different investors, and the broker believes the company will likely be taken over.

BGH's proposal of $0.80/share has already been assessed by the company as materially undervaluation. There are reports Helloworld Travel ((HLO)) has increased its shareholding to 15.67% with purchases at $0.89/share.

The broker believes any offer has to be over $1.00 to be successful.

Hold. Target lifted to 90c from 65c.

FORECAST
Morgans forecasts a full year FY26 dividend of 3.00 cents and EPS of 6.00 cents.
Morgans forecasts a full year FY27 dividend of 3.30 cents and EPS of 6.70 cents.

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26/05/2025

1

Overweight

-

-

Wilsons note Webjet Group reported FY25 earnings EBITDA of $39.4m, 1.5% above expectations, with earnings supported by lower corporate costs.

WebOTA performance was softer, with rev/TTV of 9.1% and margin of 43%, both below forecast.

Management guided FY26 earnings (EBITDA) to be broadly in line with FY25, assuming no further trading deterioration. The first seven weeks of FY26 were soft due to timing of Easter and Anzac Day.

The broker notes investor focus is split following recent register changes and that confidence must be restored post strategy update.

Earnings outlook is under review pending the earnings call. The board intends to launch an on-market buyback once register dynamics allow. Target price and rating remain under review.