Julia likes the Australian-based travel business, Helloworld (HLO), which, she says. is is placed to grow on the back of merger synergies, cost savings and further acquisitions.
“Sentiment on HLO should continue to improve. Shares had been under pressure pre-Federal election on basis that close ties with the company to the Liberal Party meant that several big contracts were at risk,” she says.
“With the Coalition win and confirmation that government travel management services had been extended, the risk has subsided, and the share price should continue to improve.
“Government contacts account for around 12% earnings,” she adds.
Source: Google
However Julia sees Webjet (WEB), the online travel agency, as a sell. “Industry data is indicating that it’s been a tough second half for travel companies in Australia,” she says.
“The post -election bounce doesn’t seem to have materialized and consumers remain cautious.
“In UK and Europe, Brexit uncertainty and the hot European summer could impact on demand,” she adds.
Source: Google
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