Why all eyes will be on Webjet (ASX: WEB) stock price next week

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Next week is going to be a big week for them Webjet Limited (ASX: WEB) share price.

The online travel agency is expected to release its highly anticipated half-year results on Wednesday, November 24th.

Before it was released, I thought I’d see what the market would expect from Webjet.

What can you expect from the results from Webjet?

It is widely expected that Webjet will publish a much improved result for the six months ended September 30th. However, it is likely to be far too early to return to profitability.

For example, Goldman Sachs Forecasts total Transaction Value (TTV) increase 611% to $ 668.6 million, revenue of $ 52.5 million, EBITDA loss of $ 13.4 million, and after-tax loss of 35 . $ 5 million.

The broker, which has a buy rating and a target price of $ 7.00 on Webjet stock, also expects the company to end the period in a strong financial position despite the loss. Goldman expects the company’s net cash position to be $ 117 million.

What else is said

The team at city are a little more cautious and have warned investors that Webjet’s cost could come as a negative surprise.

Citi commented, “Webjet reports 1H22 results on November 24th. The most important areas of the result for us are: Short-term costs – We estimate that the market is underestimating the B2B costs in 1H22. The market implies ~ $ 40 million for half, which means zero cost base growth over FY21 despite the increased activity. “

The analysts have a neutral (high risk) rating and a target price of $ 6.35 on the Webjet share price.

Is Webjet’s stock price a buy?

Opinions remain extremely divided. While Goldman clearly sees a lot of value in the price of Webjet stock, Citi is still on the fence with its neutral valuation.

It’s also worth noting that Webjet is one of the most heavily shorted stocks in the Australian stock market. This seems to be an indication that there is a group of investors out there who believe the company’s bottom line will disappoint. However, it is worth recognizing that if they are wrong and impress Webjet, they can easily get caught in a brief press.

Time will tell what happens, but Webjet stock will certainly be worth watching next week.

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