1 amazing Aussie stock down 40% to buy and hold

Let's see why analysts think this top stock could be a buy after a significant pullback.

Web Travel Group Ltd (ASX: WEB) shares have experienced a significant decline over the past 12 months.

During this time, the Aussie stock has lost approximately 40% of its value.

This means the travel technology company's shares are currently fetching just $4.52.

A woman stands at her desk looking at her phone with a panoramic view of the harbour bridge in the windows behind her.

Image source: Getty Images

What is this Aussie stock?

Web Travel — the company formerly known as Webjet — is now laser-focused on its WebBeds B2B travel business. It connects thousands of travel agents and resellers to hotel rooms around the world.

Whether you've booked hotels on Expedia or Booking.com or accommodation on Airbnb, there's a good chance your reservation has gone through the WebBeds platform.

This means that the WebBeds division gives investors exposure to the fast-recovering travel industry without relying on traditional consumer bookings. Instead, it taps into the wholesale layer of the sector — and it is already one of the largest global players in the space.

While its FY 2025 earnings were hit by margin pressures, Web Travel still delivered underlying EBITDA of $121 million — right in line with its updated guidance. And with management working to stabilise margins and optimise its customer mix, the future is looking very bright.

In fact, the Aussie stock recently reaffirmed its FY 2030 targets. This is for $10 billion in total transaction value (TTV) with an underlying EBITDA margin of 50% for WebBeds.

As a comparison, TTV was $4.9 billion and its underlying EBITDA margin was 42.3% in FY 2025.

Time to buy

The team at Macquarie thinks that now could be the time to buy this Aussie stock.

Its analysts recently upgraded the stock to an outperform rating with a $6.19 price target. That implies potential upside of around 37% from current levels.

Commenting on its bullish view on Web Travel, the broker said:

Upgrade to Outperform (from Neutral). We expect WEB will continue to scale TTV and are increasingly confident it will reach its $10bn FY30 target. Visibility concerning medium-term revenue and UEBITDA margins has improved. WEB should outperform other ASX travel peers in volatile macro conditions.

Macquarie also sees opportunities for this Aussie stock to consider making acquisitions. It adds:

WEB have M&A firepower however. Mgmt noted on the call inorganic TTV growth is not in focus as given it is confident in reaching their FY30 target organically. Any potential acquisitions are likely to be more strategic within the broader travel space, such as customer facing technology to help improve efficiency.

Overall, this beaten down stock could be worth considering based on what Macquarie is saying.

Motley Fool contributor James Mickleboro has positions in Web Travel Group Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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