Canaccord Genuity starts Web Travel Group with a Buy rating

Published 07/02/2025, 09:40
Canaccord Genuity starts Web Travel Group with a Buy rating

Monday, Canaccord Genuity initiated coverage on Web Travel Group Ltd (WEB:AU) (OTC: WEBJF) with a positive outlook, assigning the stock a Buy rating and setting a price target of AUD6.30. The new coverage comes despite recent investor concerns regarding the company’s lower-than-expected revenue and EBITDA margins, stemming from increased expenses and revenues that did not meet forecasts.

Canaccord Genuity’s analysis points to Web Travel Group’s potential for above-market revenue growth, surpassing its FY30 target, and achieving a 40%+ EBITDA margin. The firm’s analysts are optimistic about the company’s ability to expand its Total (EPA:TTEF) Transaction (JO:TCPJ) Value (TTV) to $10 billion by FY30E and potentially further in the subsequent period.

The positive stance is supported by strong data indicating that Web Travel Group, along with the two other major global bed bank providers, is well-positioned to capture additional market share. This industry shift is expected as technology continues to advance, offering improved outcomes for all parties involved in the travel sector.

Canaccord Genuity’s report highlights Web Travel Group’s strategic positioning and the anticipated industry trend towards modernized technology solutions over traditional legacy providers. The firm’s analysts believe that this trend will benefit Web Travel Group in the long run, underscoring the rationale for the Buy rating and the AUD6.30 price target.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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