Shareholders in online travel booking provider Wotif.com Holdings Limited (ASX: WTF) which owns a number of high traffic websites including wotif.com, lastminute.com.au and travel.com.au have seen their shares rocket around 15% today, despite bad press surrounding the company’s outlook.
The media reporting has included a call by broking house Credit Suisse that Wotif.com will miss analyst full year consensus estimates and a further downgrade to profit forecasts by broker Moelis.
However it appears the market has decided these negatives are more than factored into the price, with investors wading into the market today to buy. By early afternoon around 11 million shares had traded hands.
It’s been a poor financial year so far for listed comparison website companies. Wotif.com, iSelect Ltd (ASX: ISU) and Webjet Limited (ASX: WEB) have experienced nasty falls of 39%, 30% and 38% respectively.
However with Wotif.com’s shares trading on a forward price-to-earnings ratio of 13.75, which is below the market multiple of 14.9 times, there could be more upside in the stock yet.