Shares of Web Travel Group have rebounded following a significant sell-off, driven by a series of analyst updates on the stock’s outlook. Notably, several firms have made substantial revisions to their recommendations:
Citi downgraded the stock from “buy” to “neutral,” slashing its target price from $8.25 to $5.55, while also revising its EBITDA estimates downward by approximately 30% for FY25 and 20% for FY26.
Jarden maintained its “overweight” rating but reduced its target price from $7.70 to $7.10, along with a 15% cut to its FY25 EBITDA forecast.
Morningstar lowered its fair value estimate by 8% to $6 per share, decreasing underlying EBITDA forecasts by an average of 24% over the next three years.
Morgans kept its “equal-weight” rating with a price target of $7.
The context of these changes stems from Citi analysts highlighting “increased uncertainty and the rapid pace of change” within the industry. They pointed to the fast-evolving competitive landscape as a factor that raises concerns about visibility and potential forecast risks.
Jarden analysts noted that the company’s two downgrades within two months underscore heightened competition and execution risks. However, they argued that the market’s reaction to the recent results appeared excessive.
Meanwhile, Morningstar analysts assessed many of Web Travel Group’s near-term challenges as cyclical, particularly referencing the impact of the tour operator FTI Group’s collapse. They believe that the current downside risks are likely overestimated following Monday’s sell-off.
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