Image source: Getty Images
Broker Wilsons Advisory is predicting Web Travel Group Limited (ASX: WEB) shares could pile on more than 50% over the next 12 months, following a strong start to the year.
The company, which runs the WebBeds online global travel marketplace, updated the market at its annual general meeting last month, saying it was on track for a record year despite a sharp increase in cancellations over two weeks in June due to the Israel-Iran conflict.
"Trading has since picked up in other regions, however the Middle East continues to see ongoing weakness," the company said.
"WebBeds continues to gain market share, total transaction value (TTV) margins remain stable, and we are on track to deliver record EBITDA in FY26."
Wilsons Advisory said in a note to clients that while the "exceptional" start to the year in April and May had moderated, "TTV growth to late-August is still strong at mid-teens (%) and also in a relative sense, outpointing major competitor HBX Group'".
A slowdown from the exceptional start to 1H26 was always expected, even more so following the Middle East conflict. However, WEB's TTV growth has remained strong in the circumstances and in particular in a relative sense, clearly outpointing major competitor HBX Group which registered more modest 8% TTV growth in the June quarter. We believe WEB's decentralised model and agile supplier inventory approach are key differentiating factors.
Wilsons has an overweight rating on the stock with a $6.25 price target. This represents a 51% gain on the share price at the time of writing.
Web Travel Group is expected to release its first-half results on November 25.
