What’s in store for the Webjet share price in FY23?

Man sitting in a plane seat works on his laptop.Man sitting in a plane seat works on his laptop.

The Webjet Limited (ASX: WEB) share price started poorly and continues to slide into the red on Friday.

At the time of writing, the share is swapping hands at $5.09 apiece, more than 5% down on the day.

Meanwhile, travel shares have faced turbulence lately, amid a number of headwinds that could potentially impact the wider sector.

Webjet share price to face headwinds in FY23?

It hasn’t been a good start for Webjet on the chart this financial year. The share trades at 3-month lows after taking a nosedive on two occasions.

First was on 8 June, when it slipped from $6.13 to $5.15 in just over 1 week. It then traded sideways into FY23.

That was, until 20 July, where it’s fallen from $5.45 to the current market price. This price action could certainly impact the outlook for Webjet in FY23.

Moreover, as TMF reported today, ASX travel shares have sold off following a set of weak quarterly earnings from two US airlines overnight.

“This has sparked fears that the travel market recovery may take longer than hoped,” TMF said.

These fears have been compounded by a more downbeat outlook on the macroeconomic front, Morgans says.

“Despite travel demand recovering strongly, in recent months the travel sector globally has derated due to concerns about a weak macro outlook,” the broker said in a recent note.

Meanwhile, 46% of brokers covering the Webjet share price say it’s a buy right now, according to Refinitiv Eikon data.

From this list, the consensus price target is $5.94 apiece, suggesting some more upside if these brokers turn out to be correct.

In the last 12 months, the Webjet share price has held a 4% gain.

The post What’s in store for the Webjet share price in FY23? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. 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 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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