Web Travel Group initiated with a Buy at Canaccord

Canaccord analyst Andrew Hodge initiated coverage of Web Travel Group (WEBJF) with a Buy rating and A$6.30 price target Web Travel is the B2B arm of the previous Webjet Group prior to demerging, notes the analyst. The industry consolidation that has taken place over the past 10 years has accelerated the “demise of wholesale booking agents” and given rise to a small group of scaled, technologically advantaged global firms, such as Web Travel, says the analyst. The backdrop of missed earnings and questions around sustainability of revenue margin has “created in our view a compelling buying opportunity,” the analyst added.