On Thursday, Webjet Limited (WEB:AU) (OTC: WEBJF) stock received an upgrade in its rating from Neutral to Overweight by an analyst at JPMorgan. Accompanying this upgrade, the price target for the company was raised to AUD11.00, up from AUD11.00.
The upgrade was influenced by Webjet's strong financial performance for the fiscal year 2024 and its ambitious goal to more than double its B2B business to AUD10 billion in total transaction value (TTV) by the fiscal year 2030. The analyst also noted the potential for a re-rating of the company's stock in light of a possible demerger of its B2B and B2C businesses.
The demerger is seen as a strategic move that could unlock value for both segments of Webjet's operations. The analyst's report included a Sum of The Parts (SOTP) framework, which was factored into the valuation and contributed to the increase in the price target for September 2025.
Webjet's recent fiscal year results and forward-looking targets suggest a positive trajectory for the company. With the analyst's SOTP framework highlighting the potential for increased value, the new price target reflects an optimistic outlook for Webjet's shares in the coming years.
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