WEB advanced +1.8% on Monday, taking its year-to-date gain to an impressive +19.1%, making it the sector’s standout performer following its well-received strategy day last week. The company’s growth is expected to come from its WebBeds segment, with the business-to-business (B2B) strategy focusing on aggregating available accommodation and distributing it through travel agents. While revenue margins are lower for the B2B work, the volumes are larger, and we believe the conversion story is not fully appreciated by investors, with WEB able to leverage technology, big data and AI projects to “encourage” consumers to spend on their platform.
- We like WEB but are conscious that the stock is capable of dropping $1-2, so we are reticent to chase strength above $8.50.
MM is bullish WEB medium-term
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