It’s gained 60% in 2 years, does the Webjet share price still have room to grow?

This time two years ago the Webjet Limited (ASX: WEB) share price was deep in a pit of COVID-19 induced despair.

The company has since picked itself up by the bootstraps, returning to profitability in the second half of financial year 2022.

Right now, stock in the online travel agency is swapping hands for $5.07. That’s around 63% higher than it was at this point of 2020.

But after such a meteoric rise, does the travel share have anything left in the tank? Let’s take a look at what experts are saying.

What might the future bring for the Webjet share price?

The Webjet share price suffered through the worst of the pandemic before recently marking its return to profitability.

On posting its results for financial year 2022 – which, in the case of the company, ran to 31 March 2022 – it noted it ended the second half in the green despite posting a full year statutory loss of $85.4 million.

It also said it expects to reach pre-pandemic booking volumes in financial year 2023.

And analysts at Wilson Asset Management think it could get there sooner than others expect.

Senior analyst Shaun Weick has picked Webjet as a ‘buy’, as my Fool colleague Tony reports. Weick said:

If you look at consensus analyst estimates on [Webjet], you’re essentially implying a recovery to pre-COVID in the second half of 2023. We think that’s too conservative …

We think the market’s under appreciating the technology investments that they’ve made and the upside that provides.

Meanwhile, Morgans senior analyst Belinda Moore noted Webjet was among the broker’s top travel buys last month as it tipped a (slower than previously expected) recovery for the industry.

Though, not all experts see blue skies ahead for the Webjet share price.

As my colleague Zach reported last month, many are split between recommending Webjet stock as a buy or a hold.

Only 46% of the brokers referenced by Refinitiv Eikon data said it was a buy. They tipped a consensus price target of $5.94.  

While it’s much higher than it was 24 months ago, the Webjet share price has slumped 6% year to date. It’s also traded flat over the last 12 months.

The post It’s gained 60% in 2 years, does the Webjet share price still have room to grow? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares to buy for a post-COVID resurgence: experts
• Here’s what I consider to be the very best ASX 200 share to buy in August
• Why did the Webjet share price trail the ASX 200 in July?
• Why is the Webjet share price having such a great start to the week?
• Why are ASX 200 travel shares having such a stellar session?

Motley Fool contributor Brooke Cooper 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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