Is the Webjet Limited (ASX: WEB) share price a buy? It has been an amazing performer recently.

In just one month the Webjet share price has risen by 94%. There have been other shares that have recovered strongly from the coronavirus lows like Afterpay Ltd (ASX: APT), but Webjet is one of the ones that are cut off from almost all of the customer base.

When Webjet did the capital raising it was planning for the eventuality of needing to survive until around the New Year without any material revenue. It doesn’t seem that dire now. 

But things seem to be getting back to normal quicker than expected. Travel within each Australian state is being encouraged. There’s plans for travel across the entire country. There will hopefully be a travel link with New Zealand sooner rather than later. Things are looking up. 

Does the Webjet share price represent good value?

It was only two weeks ago when I said that the Webjet share price was cheap at a share price of $3.24. Since then it has risen around 35%.

Between now and then I said it might be wise to take some profit off the table. I’m even more of that belief now. Remember that there are a lot more Webjet shares on issue that there used to be, so future earnings will be shared with more shares.

At the moment there still isn’t much travel going on. The coronavirus seems as though it’s going to be around in the world for some time, so international travel could be very limited until 2021.

In 2030 I think we’ll be looking at a much higher Webjet share price. But I worry that today’s share price may be too optimistic. All of the coronavirus impacts are still to play out. Retirees may be less willing to leave their respective countries right now. Earnings may not bounce back as much in the near term as expected with this share price.

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The post Up another 5%: Is the Webjet share price a buy? appeared first on Motley Fool Australia.

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There’s no stopping the bulls! The ASX surged to a two-and-a-half month high in after lunch trade despite brewing geopolitical tensions threatening to overtake the COVID-19 pandemic as a major source of contention.

The S&P/ASX 200 Index (Index:^AXJO) jumped 2.4% to 5,753 at the time of writing. If it finishes at this level, it would mark it highest close since March 10.

Warnings of overstretched valuations and trade protectionism between China and the US and its allies can’t stop our market from entering into bull territory.

If you missed the big 25% bounce from the bear market low in March, it might not be too late to join the party as brokers have only just upgraded these ASX shares to “buy”.

Turning point

The first is Smartgroup Corporation Ltd (ASX: SIQ). Shares in the novated leasing group jumped 9.3% to $6.40 at the time of writing after Morgans upgraded the stock to “add” from “hold”.

Positive news from industry peer Eclipx Group Ltd (ASX: ECX) and anecdotal signs of a recovery in the automotive sector gave the broker enough reason to lift its recommendation on Smartgroup.

“The clearest data point has been from ECX, which recently reported novated lease orders (as at mid-May) were down ~35% on pre-Covid levels, having recovered from down ~60% in April,” said Morgans.

“Historically, SIQ’s novated volumes have been less volatile given a higher skew to Government and Health sectors.

“In addition, ECX has shown a very strong week to week recovery in its fleet end of lease car sales (recovered to within 4% of pre-Covid levels).”

The broker’s price target on Smartgroup is $6.95 a share.

Dropping into the “buy” zone

Another stock racing higher today is the Insurance Australia Group Ltd (ASX: IAG) share price. Shares in the insurer jumped 3.2% to $5.80 as IAG became the latest stock to be added to Credit Suisse’s buy list.

The broker upgraded its rating on IAG to “outperform” from “neutral” after its shares lagged the market by around 14% over the past two months.

The sell-off could be overdone. Not only are the earnings risk priced into the stock, but increases on insurance premiums and very low (sometimes negative) bond yields could trigger a rebound.

“We previously considered IAG a defensive stock in the current environment but struggled with valuation,” said the broker.

“Post a recent share price pullback and the stock trading at a 10% PE discount to the market, from 0-20% premium in recent years, we now consider IAG at an attractive entry price.”

Credit Suisse’s price target on IAG is $6.40 a share.

More reading

• Why these 3 ASX 200 tech shares offer great value
• Up over 100% in 2 months. Are Nearmap shares still a buy at current prices?
• Leading brokers name 3 ASX 200 shares to sell today
• The ASX 200 just hit an 11-week high. Here are 3 reasons we might be in overvalued territory
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Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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It is another positive trading day for the S&P/ASX 200 Index (ASX: XJO), up by 1.8% at the time of writing. This follows yesterday’s strong share price gains across the board.

Australia’s technology sector performed particularly strongly with few tech shares in the red today. This is likely driven by hopes the Australian economy can return to normal quicker than anticipated.

Here we examine three ASX tech shares which have performed particularly strongly so far today: Bigtincan Holdings Ltd (ASX: BTH), Audinate Group Limited (ASX: AD8) and Wisr Ltd (ASX: WZR).

Bigtincan

Bigtincan operates in the fast-growing sales enablement niche within the IT software market. Bigtincan provides organisations and their sales teams with a platform to access and collaborate on content and improve customer engagement.

It also leverages artificial intelligence through features which enable users to personalise and recommend content. Its core offering is accessible to users on a range of desktop and mobile platforms through devices like iPads.

Bigtincan’s was caught up in the wider market selloff on the ASX over the past few months, triggered by the coronavirus crisis. Its share price declined from $1.02 in mid – February to $0.265 in mid – March, a massive 73% decline. Since then, its share price has recovered a large part of that loss and is up another 6% today to currently trade at $0.795.

Audinate

Audinate’s uses its audio networking solutions in the production of a range of professional audio equipment. Its core networking solutions improve audio quality using ethernet or fibre optic cables. This ultimately reduces the need for extra cabling and installation.

A recent market update showed that Audinate believes it is in a relatively strong position to navigate through current economic challenges. This is supported by a very healthy $30.9 million cash on hand and is underpinned by a strong balance sheet. This shows the ability to deliver solid revenue growth in the March quarter.

Like Bigtincan, Audinate has seen a strong bounce back in its share price since mid-March. This rally in its share price continued further today with a strong 10.6% gain at the time of writing.

Wisr

Online fintech lender, Wisr has also seen a rally in its share price since mid-March. Wisr is up another 8% today, although its market rally is not as strong as either Bigtincan’s or Audinate’s. Its current share price of $0.162 is still 49% below its February high of $0.315.

Wisr’s loans are used for a range of purposes such as debt consolidation, buying a vehicle, home renovations, wedding and travel. With discretionary spending dramatically reduced during the coronavirus, it’s not surprising its share price has been hit hard in recent months. However, renewed optimism in the Australian economy has helped to drive its share price higher today.

More reading

• 3 stellar ASX tech shares to buy and hold for decades
• Got $10,000 to invest? I would buy these ASX shares right now
• Why Aristocrat Leisure, Bigtincan, Clover, & Megaport shares are dropping lower
• 3 small cap ASX tech shares that could be stars of the future
• These small cap ASX shares could be stars of the future

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and BIGTINCAN FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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