DAVY VIEW

We are updating our Hostelworld forecasts to reflect the recent interim results. The company flagged a c.3% impact to booking volumes as a result of the conflict in the Middle East. However, transaction values were strong owing to its Elevate tool, which boosted its commission rates, alongside a favourable geo-mix. For the full year, we now expect a similar revenue mix. Although we reduce our EBITDA and EPS forecasts, growth remains attractive and our valuation methodology suggests c.30% upside. Consistent delivery will be the key catalyst from here.