The Webjet share price hit a new 52-week high today. What’s going on?

It’s been a rather inspiring day for ASX shares and the S&P/ASX 200 Index (ASX: XJO) this Tuesday. At market close, the ASX 200 has added a healthy 0.29% to its value, putting the index at around 7,250 points. But it’s been even better for the Webjet Limited (ASX: WEB) share price.

Webjet actually spent most of the trading day in the red. It opened at $6.23 before falling to an intraday low of $6.15 this morning. But investors seem to have gotten a second wind. In late afternoon trade, Webjet rose above the breakeven line again and hit a high of $6.30 a share before closing at $6.29, up 0.96% for the day.

$6.30 is a new 52-week high for Webjet. This ASX 200 travel share last saw a share price at this level back in October 2021. This is the culmination of a rather incredible run Webjet has been on recently. Over the past month alone, this travel company has gained a healthy 19.1%. It’s now up an even more impressive 35.5% or so since 3 October.

But although shareholders will no doubt be rejoicing in this new high watermark today, the Webjet share price still remains well below its pre-COVID pricing levels. To illustrate, Webjet was asking for around $9.80 a share back in February 2021. Its last all-time record high occurred way back in August 2018. That saw the company break over $12.20 a share.

But no point in looking back to ruin the joys of this moment for investors.

So what’s behind this new high for Webjet?

Why is the Webjet share price flying to new highs?

Well, it’s almost certainly got something to do with the company’s impressive half-year results that were delivered earlier this month, back on 17 November.

As we covered at the time, Webjet delighted investors by announcing a 217% increase in revenues and a 557% rise in earnings before interest, tax, depreciation and amortisation (EBITDA).

The company also recorded a net profit after tax (NPAT) of $32 million, which was a nice swing from last year’s loss of $29.2 million. Even better, Webjet declared that is on track to exceed its pre-pandemic profitability in FY2023.

The Webjet share price jumped 10% upon the release of these results, and investors haven’t really looked back since.

But things could get even better for Webjet and its investors. As my Fool colleague James covered on the weekend, ASX broker Goldman Sachs has put Webjet on its conviction list.

The broker has a conviction buy rating on the company right now, with a 12-month share price target of $6.90. That would represent another near-10% gain from where the Webjet share price finished today.

 

The post The Webjet share price hit a new 52-week high today. What’s going on? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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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