Web Travel Group Ltd
(
ASX: WEB
) stocks have grabbed attention this week.
The share prices of the business-to-business travel firm have surged following the announcement of unexpectedly positive results.
full year result
.
Web Travel reported a 22% rise in total transaction value (TTV), witnessing robust expansion across all geographical areas. Although TTV margins dipped slightly in fiscal year 2025 as anticipated, these margins have since stabilized.
The managing director of Web Travel, John Guscic, also disclosed that the fiscal year 2026 began with strong momentum. He stated:
Our performance for the beginning of FY26 has been outstanding, with Total Transaction Volume (TTV) increasing by 37% and bookings rising by 29%, both compared to the corresponding timeframe from the previous year. For this fiscal year, we aim to achieve a record-breaking EBITDA figure and stay dedicated to reaching $10 billion in TTV by FY30, all while maintaining approximately 50% EBITDA margins.
The folks at Macquarie have been analyzing the outcome. Let’s find out what they’re sharing regarding Web Travel and their stock performance.
What does the broker say regarding Web Travel stock?
As per the note, the outcome aligned with Macquarie’s expectations. The statement read:
The WEB Travel Group reported an EBITDA of $121 million, which aligns with their forecasted range of $117-$122 million. However, WebBeds saw a decline in EBITDA margins to 42.3%, representing a decrease of 830 basis points year over year. This drop can be attributed to a reduction in travel value transaction (TTV) revenue margins by 130 basis points down to 6.7%.
The broker was equally delighted to observe that management anticipates an enhancement in the WebBeds underlying EBITDA margin for fiscal year 2027. Although they remain skeptical about achieving this target, they view it as progress being made in the appropriate direction. They further comment:
The anticipated EBITDA margin for WebBeds is now projected to rebound to around 50% in FY27 (previously estimated at FY26). From our perspective, this revised outlook appears more feasible. Such an outcome would facilitate ongoing investments, thereby supporting Total Transaction Value (TTV) expansion. As WebBeds’ TTV continues to grow, the company’s EBITDA margins stand to gain additional advantages through operational efficiencies. Our projection places WebBeds’ FY27 EBITDA margin at approximately 49.0%, reflecting only a slight dip compared with their target due to our predicted TTV figure of about $6.7 billion being just shy of the anticipated level of roughly $7 billion.
Following these outcomes, Macquarie has raised Web Travel’s share rating to an outperform level and increased its price target by 28%, setting it at $6.19 compared to the previous figure of $4.83. Explaining their upgrade decision, the brokerage firm stated:
Upgraded to Outperform from Neutral. Our outlook suggests that WEB will keep expanding Total Transaction Volume (TTV) and we’re growing more convinced it can hit its $10 billion fiscal year 2030 goal. There’s now greater clarity around near-to-medium term revenues and Underlying EBITDA margin expectations. In fluctuating economic climates, WEB is poised to surpass many of its Australian Securities Exchange (ASX)-listed counterparts in the travel sector.
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What valuation does Macquarie place on Web Travel Group shares?
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.
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Motley Fool
contributor
James Mickleboro
holds stakes in Web Travel Group Limited. Its parent company, Motley Fool Holdings Inc., has investments in and recommends shares of Macquarie Group. Similarly, The Motley Fool Australia also owns stocks in and endorses purchasing Macquarie Group. The Motley Fool maintains
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This article includes solely general investment advice (covered under AFSL 400691). Authored by Scott Phillips.
