Web Travel Group Ltd (ASX: WEB) earlier this week delivered a strong set of full-year numbers, giving its shares a healthy boost as investors digested the news.
Brokers have also run the ruler over the company's figures and have come up with quite divergent views on how the stock will perform. We'll have a look at what they're saying shortly.
First, let's have a look at what Web Travel Group reported.
Image source: Getty Images
Volumes looking good
In a statement to the ASX, the company said that total transaction volume (TTV) was up 20% compared with FY25 to $5.8 billion, driven by "significant organic growth in the Americas and Europe", while TTV margins improved 0.1% to 6.8%.
Revenue increased 20% to $394.1 million while net profit was up from $11.1 million in FY25 to $35.5 million.
Web Travel Group Managing Director John Guscic said:
FY26 was a terrific year for the WebBeds business. We continue to win share, TTV margins continue to improve, and our scalable business model is delivering higher operating leverage. WebBeds' EBITDA margin remains world class. We have been able to maintain our market-leading TTV growth rate with no margin pressure. WebBeds delivered $1 billion incremental TTV1 this year at an improved margin compared with last year, demonstrating disciplined growth and margin resilience. This impressive result was delivered in an environment where the conflict in the Middle East placed downward pressure on Bookings and TTV in March 2026. The key driver of our FY26 result was the outstanding performance of our Americas business which saw Bookings 41% higher than the previous year. Europe also performed well with Bookings up 19%.
Mr Guscic said while APAC and MEA were both impacted by the Middle East conflict, they both increased bookings during the period.
On the outlook, for the first eight weeks of FY27, bookings were up 6%.
Brokers divided on the outlook
The analyst team at Macquarie had a look at these results and they like what they see.
They said while TTV was in line with consensus estimates, TTV margins were better than expected.
They did say that margins could come under pressure as the Middle East conflict drags on, but they said the company's ongoing investment should position them well for any recovery in travel activity.
Macquarie has a price target of $4.05 on Web Travel Group shares compared with $2.69 currently.
Morgans is also bullish on the stock, saying the share price weakness has made it a buy.
They added:
The company is worth materially more than the current share price. We know from past economic and geopolitical events, that after a downturn, travel demand rebounds and so will its earnings and share price.
Morgans has a price target of $3.75 on the shares.
And lastly Morgan Stanley, which believes the shares are fully priced at the moment, has a price target of just $2.60 on the shares.
They noted that the company has a larger share of the market in the Middle East region than its peers, and said margins would come under pressure as the company invested to maintain growth.
Web Travel Group is valued at $919.3 million.
