Yahoo Finance Analysts Are Betting On Webjet Limited (ASX:WEB) With A Big Upgrade This Week
Webjet Limited (ASX:WEB) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Webjet will make substantially more sales than they'd previously expected.
Following the upgrade, the latest consensus from Webjet's 13 analysts is for revenues of AU$471m in 2024, which would reflect a major 29% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 601% to AU$0.27. Prior to this update, the analysts had been forecasting revenues of AU$428m and earnings per share (EPS) of AU$0.26 in 2024. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.
Check out our latest analysis for Webjet
Analysts increased their price target 13% to AU$7.54, perhaps signalling that higher revenues are a strong leading indicator for Webjet's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Webjet at AU$10.00 per share, while the most bearish prices it at AU$5.50. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Webjet's past performance and to peers in the same industry. For example, we noticed that Webjet's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 29% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 25% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.2% per year. So it looks like Webjet is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Webjet.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Webjet analysts - going out to 2026, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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