The Webjet Ltd (ASX: WEB) share price has been on a high in the last nine days on the market.
The travel company’s share price has surged nearly 10% since market close on 12 May. Qantas Airways Limited (ASX: QAN) shares have climbed 3% in the same frame, while Flight Centre Travel Group Ltd (ASX: FLT) shares have gained 2.8%.
So what’s been happening at Webjet?
Webjet share price takes off
Webjet shares could have risen in recent times thanks to renewed optimism for travel. In a conference call on Thursday discussing the company’s annual results, Webjet managing director John Guscic shared his outlook for the travel industry with this notable summation:
Guess who’s back? Travel’s back, baby.
On 17 May, Webjet reported a return to profit in the second half of FY22. The company said the business turned around in FY22. The profit in the second half of the year was underpinned by the WebBeds and Webjet OTA businesses.
On the company results, Webjet said:
FY22 was a year of recovery. We are now cash flow positive, our two largest businesses returned to profitability and we are seeing markets rebound strongly as travel restrictions continue to ease.
Overall, Webjet reported a 258% jump in revenue and a statutory net loss of $85.4 million.
Webjet did not declare a dividend for FY22 due to some uncertainty still remaining. The company also has not provided an earnings guidance for FY23.
As my Foolish colleague Tristan reported recently, broker opinion on the Webjet share price is mixed. Ord Minnett has placed a $7.48 price target on the company’s shares. This is a 28.52% upside on the current share price.
However, Macquarie has predicted the Webjet share price could fall slightly to $5.80. Morgans has also maintained an add rating on the company with a $6.55 price target. This is a nearly 13% increase on the current share price.
In the bigger picture, Australia’s international borders opened on 21 February. On 18 April, cruise ships were allowed to reenter Australia as the country’s biosecurity emergency ended. The COVID testing requirement for travel was also dropped. Meanwhile, on 11 May, New Zealand announced it would reopen its borders to tourists from the end of July.
Share price snapshot
Webjet shares have ascended nearly 19% in the past 12 months, while they are up nearly 13% year to date.
However, in today’s trade, the Webjet share price fell 1.52% to $5.82. Flight Centre shares also dropped 1.84%, while Qantas shares finished 0.56% in the red.
For perspective, the S&P/ASX 200 Index (ASX: XJO) finished 0.37% higher today and climbed 1.55% during the past year.
Webjet has a market capitalisation of about $2.2 billion based on its current share price.
The post Up 10% in 9 trading days, what’s going on with the Webjet share price? appeared first on The Motley Fool Australia.
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More reading
- Is the Webjet share price an opportunity that can soar?
- The Flight Centre share price has taken off 5% in a week. Is travel really ‘back, baby’?
- These are the 10 most shorted ASX shares
- Top brokers name 3 ASX shares to buy next week
- Brokers name 3 ASX shares to buy today
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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