Webjet announced the details of the de-merger of the business-to-consumer (B2C) division, which is expected to complete in 2024, following a shareholder meeting in September, notes Morgan Stanley.

The company initially grew as a B2C business but faced market-size constraints, leading to offshore expansion and other strategies of varying success, including hotels.

Post de-merger, both business-to-business (B2B) and B2C will be net cash positive with the $250mn convertibles will remain with B2B, the broker highlights.

Equal-weight rating. The target remains at 9.30 Industry View: In-line.

Sector: Retailing.

Target price is $9.30.Current Price is $8.88. Difference: $0.42 - (brackets indicate current price is over target). If WEB meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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