WEBJET GROUP LIMITED (WJL)
Share Price Analysis and Chart

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22/05/2025

1

Buy

$1.76

102.30%

Ord Minnett raises the target price for Webjet to $1.76 from $1.59 and maintains a Buy rating, citing strong fundamentals and heightened takeover interest.

Despite domestic airline duopoly pressures and high airfares, domestic volumes declined just -9% in FY25, while international volumes rose 11%, lifting revenue per booking, explains the analyst.

Normalised profit of $20.9m slightly beat the broker’s estimate of $19.9m.

Recent disclosures from BGH and Helloworld acquiring over 10% stakes suggest the company is now in play.

Webjet remains debt-free with around $120m in cash, positioning it well for strategic execution and providing a cushion for future growth or acquisition interest, suggests Ord Minnett.

FORECAST
Ord Minnett forecasts a full year FY26 dividend of 2.10 cents and EPS of 5.20 cents.
Ord Minnett forecasts a full year FY27 dividend of 2.30 cents and EPS of 5.80 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.