The Webjet Ltd (ASX: WEB) share price fell today to close 2.58% in the red at $5.28, despite no market-sensitive news out of the company.
After staging a rally in February, Webjet has since levelled off and is trading in line with its average price earned over the past three months. As such, it is up just 2% year to date.
Not all are neutral on the Webjet share price, however. One team of analysts reckons there is plenty to like about the travel company, especially as COVID-19 starts to diminish. Let’s take a look.
Is Webjet a buy right now?
According to analysts at Goldman Sachs, it very well could be. The investment bank rates Webjet as a buy after reiterating its stance recently.
The broker sees opportunity as global travel resumes its recovery, particularly on the back of the Australian government’s decision to reopen international borders on 21 February.
Specifically, Goldman sees value in the company’s business-to-business (B2B) segment in addition to its business-to-consumer (B2C) division – both of which could surge when foot traffic normalises.
In fact, the investment bank is bullish on the overall sector and reckons it will make a full recovery to pre-pandemic levels by FY24. Australia could even be there by FY23, its analysts say.
This could bode in well for the Webjet share price, which is in dire need after trading within a tight range over the past 12 months, as seen below.
After a slight recovery, it is still well below its pre-pandemic highs in January 2020, as market pundits appear to have been nervous until there is full clarity on the global travel situation.
Goldman values Webjet shares at $6.90 apiece in its most recent update, placing it near the top of the list of analysts covering the company provided by Bloomberg Intelligence.
At the current market price, this suggests upside potential of 31%.
The consensus price target from this list is $5.68. Some 40% of coverage has it as a buy, while 50% has it as a hold. Just one broker has it as a sell on a very old rating.
Webjet share price snapshot
In the last 12 months, the Webjet share price has fallen almost 7%.
This year, February included a three-month high for Webjet, nudging past $6.18 per share mid-month before struggling at the back end amid the current climate.
During the past month of trading, Webjet shares are up 2%. However, the party didn’t arrive this week for Webjet with investors sending it packing 4% lower since last Friday’s close.
As a result of this activity, shares haven’t managed to recover back at pre-pandemic highs of $12.19 achieved back in 2019, and then $10.42 in January of 2020.
The post Is it a buy? Broker tips 31% upside in Webjet (ASX:WEB) share price appeared first on The Motley Fool Australia.
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More reading
- How did the Webjet (ASX:WEB) share price travel in February?
- Why is the Webjet (ASX:WEB) share price having such a lousy start to the week?
- These are the 10 most shorted ASX shares
- These are the 10 most shorted ASX shares
- Is the Webjet (ASX:WEB) share price about to fly higher?
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 Bruce Jackson.
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