The Webjet Limited (ASX: WEB) share price has been a relatively positive performer in 2022.
Since the start of the year, the online travel agent’s shares have risen by 4.5% to $5.67.
This compares favourably to a 5.5% decline by the ASX 200 index over the same period.
Where next for the Webjet share price?
While opinion remains largely divided on the Webjet share price, one leading broker believes it is great value at the current level.
According to a recent note out of Goldman Sachs, its analysts have a buy rating and $6.90 price target on the company’s shares.
Based on the current Webjet share price, this implies potential upside of almost 22% over the next 12 months.
What did the broker say?
Goldman Sachs is positive on Webjet and believes investors should choose it ahead of rival Flight Centre Travel Group Ltd (ASX: FLT). The broker has a neutral rating and $19.50 price target on the latter.
It commented: “We are Buy rated on WEB, which we expect to come out stronger on the other side of the pandemic with growth potential both in the B2B and B2C spaces. WEB also maintains a strong balance sheet with c. 24 months of runway (from September 2021) at zero activity levels.”
Whereas for Flight Centre, the broker said: “We remain positive on the longer-term outlook for corporate recovery being ahead of pre-COVID levels driven by new contract wins, but more conservative on the leisure outlook. The stock remains fairly valued vs. global travel peers. We maintain our Neutral rating with a 12m Target Price of A$19.50.”
All in all, this could make Webjet a share to consider if you’re looking for exposure to the travel sector right now.
The post Goldman Sachs tips Webjet (ASX:WEB) share price to rise over 20% appeared first on The Motley Fool Australia.
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More reading
- Why is the Flight Centre share price lifting off today?
- Why are ASX travel shares taking off today?
- ASX 200 (ASX:XJO) midday update: Magellan jumps on buyback news, travel shares take off
- The Webjet (ASX:WEB) share price has fallen 10% in a month
- Flight Centre (ASX:FLT) share price climbs amid technology investment
Motley Fool contributor James Mickleboro 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 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 Bruce Jackson.
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