WEB reported its FY21 result under its new financial year end (31 March from 30 June). Given this period was impacted by COVID travel restrictions and border closures, the company reported a large loss. Webjet OTA and Online Republic are now profitable however WebBeds continues to be impacted in most regions. Importantly, WEB has plenty of liquidity following its recent convertible note offering. It is targeting to structurally reduce its cost base by 20% once scale returns. We have revised our forecasts given ongoing border restrictions and limited international travel. With WEB trading on an EV not far off pre COVID levels, we see the stock as fair value and retain a Hold rating with a new price target of A$5.10.
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