Webjet Limited (ASX: WEB) shares were in the green on Thursday, closing 0.43% higher at $6.94 per share.
The ASX travel share has rebounded 27% over the past 12 months as revenge travel continues worldwide.
The chart below shows that fellow ASX 200 travel stocks are also up significantly over the same timeframe.
Qantas Airways Limited (ASX: QAN) leads the way with 36% share price growth.
But is a change coming?
Will rising inflation and cost of living pressures dissuade people from travelling in FY24?
It’s worth noting that yesterday’s official inflation figures showed weakened holiday travel spending.
With that in mind, let’s consider whether it’s worth buying Webjet at today’s price.
This broker says it’s too late to buy Webjet shares
Wilson Asset Management reckons you’re too late to buy this ASX travel share.
At a recent investor forum, Wilson senior equity analyst Shaun Weick said the stock was a hold rather than a buy for the moment.
Weick said:
I’m going to say hold but would be adding on any weakness.
Management have done a great job throughout COVID in terms of restructuring the business to benefit form the eventual rebound in travel that’s come through.
I think what the market’s missing here is the structural improvement within the WebBeds … business which we think going forward could really surprise in terms of incremental operating leverage and TTV (total transaction value) that that business is able to attract.
The near term feedback in terms of travel is very strong. We think the outlook looks good here but hold for now.
And now, the opposing view…
As my colleague James reports, Morgans offers a counter view on Webjet shares.
It rates Webjet a buy at today’s share price. In fact, the broker reckons there’s potentially 30% share price growth ahead over the next 12 months.
Morgans thinks Webjet came out of the pandemic a significantly stronger company.
The broker says:
WEB has clearly come out of COVID with a materially lower cost base, consolidated systems and a large business in the US.
With plenty of market share still to win, we maintain an add rating on this high quality growth stock.
Morgans has a 12-month share price target of $8.97 on the travel share.
The latest news from Webjet
The latest price-sensitive news from Webjet came in May when the company released its FY23 results.
As we reported, the company smashed expectations, and Webjet shares rose 3.84% to $7.58 on the day.
For the 12 months ended 31 March, Webjet reported a 164% increase in revenue to $364.4 million.
This was underpinned by a 115% surge in bookings and a 165% jump in TTV.
The company achieved an underlying net profit after tax (NPAT) of $69.9 million, up from a $35 million loss in FY22.
