Webjet is under Algo Engine buy conditions and see buying interest building, despite the impact of Thomas Cook going into compulsory liquidation.
FY20 revenue should increase by 20% to $440mn, EBIT 20%+ to $138mn and the effective dividend yield will move to 3%.
Buy Webjet $10 – $10.50 price range.
Webjet is under Algo Engine buy conditions.
FY19 earnings grew at 43% and were ahead of market consensus. EBITDA was $125mn. FY20 guidance is now between $150mn and $200mn, representing 30%+ growth for next year.
The stock trades on a 1.9% dividend yield. Webjet goes ex-div $0.135 on 18th Sept and we expect our buy target of sub $12.00 to occur.
We see buying supporting building within the $11.50 to $12.00 range.
Webjet comes onto our radar following the recent algo engine buy signal.
The stock is outside our core mandate of ASX 100, however, the above average earnings growth in Webjet warrants keeping watch of price support at the $13 level.