AU
UK
CA
US
IND
NZ
This report is an updated version of the report published on 21 November 2024 at 03:55 PM AEDT.
Company Overview
WEB Travel Group Limited (ASX: WEB), formerly Webjet Limited, is an Australia-based global business to business (B2B) travel distribution company. The Company connects travel sellers with travel buyers across all major global markets. Ainsworth Game Technology Limited (ASX: AGI) is an Australia-based company engaged in the designing, developing, manufacturing, selling and servicing of gaming machines and other related equipment and services. Kalkine’s Sector Report covers the Investment Summary, Sector Overview & Supporting Catalysts, Data Insights & Analysis, Financial Metrics, Financial Commentary, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on selected stocks.
Investment Summary
Sector Overview and Supporting Catalysts
Data Insights and Analysis
Index Performance
Investment theme and stocks under discussion (WEB, AGI)
After understanding the sector, let us now look at two companies from the hotels and entertainment sector listed on the ASX. The price potential of the companies under discussion have been analysed based on EV/EBITDA-based relative valuation multiple method.
1. ASX: WEB (WEB Travel Group Limited)
(Recommendation: ‘Speculative Buy’ at AUD 4.300; Potential Upside: Low Double-Digit; MCap: AUD 1.77bn)
WEB, formerly Webjet Limited, is an Australia-based global business to business (B2B) travel distribution company. The company connects travel sellers with travel buyers across all major global markets. WEB spun off its online travel agency business, Webjet Group (ASX: WJL), last month. WJL began trading as an independent entity on ASX on 23 September.
The stock has declined by ~40.38% in last three months, and over the past six months, it has fallen by ~45.07%. The stock has a 52-week low and 52-week high of AUD 3.935 and AUD 9.720, respectively and is currently trading below the 52-week high-low average. WEB was last covered in a report dated ‘17 October 2024’.
2. ASX: AGI (Ainsworth Game Technology Limited)
(Recommendation: ‘Speculative Buy’ at AUD 0.710; Potential Upside: Low Double-Digit; MCap: AUD 249.22mn)
AGI is an Australia-based company engaged in the designing, developing, manufacturing, selling and servicing of gaming machines and other related equipment and services.
The stock has witnessed a correction of ~17.88% in last six months, and over the past nine months, it has declined by ~46.15%. The stock has a 52-week low and 52-week high of AUD 0.695 and AUD 1.450, respectively and is currently trading below the 52-week high-low average. AGI was last covered in a report dated ‘24 October 2024’.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 21 November 2024. The reference data in this report has been partly sourced from REFINITIV
Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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Past performance is not a reliable indicator of future performance.
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