Citi asserts consensus expectations for first half earnings are too high, noting the pace of the company’s recovery is tracking below general aviation activity levels.
Nevertheless, the broker acknowledges the size of the opportunity and the targeted returns in the WebBeds division and accepts it is hard to be too negative.
Yet, given softer data, Citi pushes out expectations and views the opportunity and risk/reward as balanced. Hence, a Neutral/High Risk rating is maintained. Target is raised to $6.04 from $5.27.
Sector: Retailing.
Target price is $6.04.Current Price is $6.06. Difference: ($0.02) – (brackets indicate current price is over target). If WEB meets the Citi target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
