The Webjet Limited (ASX: WEB) share price has been caught up in the market selloff on Wednesday.
In morning trade, the online travel agent's shares are down 2.5% to $6.27.
Despite this, the Webjet share price is still up 22% since the start of the year.
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Is the Webjet share price in the buy zone?
According to a note out of Goldman Sachs, its analysts remain positive on the company.
This morning's note reveals that the broker has retained its buy rating and $6.40 price target on its shares.
However, it is worth noting that based on the current Webjet share price, this implies only modest upside of 2.1% for its shares over the next 12 months.
What did Goldman say?
Goldman held a virtual investor meeting with Webjet's management this week. It came away from that meeting feeling positive on the company's recovery from the pandemic.
One key takeaway from the meeting was the different speeds in which certain markets are recovering from COVID-19.
Goldman said: "Sentiment and recovery in the rest of the world is significantly different from the ANZ region. Europe and Americas are in the most advanced stages of recovery, while the Middle East and Africa is only beginning to recover, and Asia remains a laggard."
Its analysts also highlighted some positive commentary around the key WebBeds business.
The broker said: "The team has made 3-4 new hires in the [Americas] region and has been focused on developing the business capabilities organically in the region. 90% of the market is domestic and Webbeds is working on this opportunity. Previously Trans Atlantic was 2/3rd of this region's business and therefore the November catalyst of USA reopening is important, although the domestic opportunity implies that getting to pre-pandemic levels should not be difficult."
Trading conditions are also looking favourable in Europe for WebBeds. Especially given how some of its rivals failed to make it through the pandemic.
Goldman said: "Competition remains lower in the European market, as the group has not seen some companies who entered hibernation during COVID recover, and smaller players trying to enter new markets to disrupt is also lower. Management expects to look at M&A opportunities if it offers ancillary opportunities rather than to achieve scale."
All in all, the broker came away feeling positive on Webjet's recovery and has retained its buy rating.
It concluded: "Overall, the feedback from this meeting was largely positive with key internal process targets remaining on track to deliver, and travel recovery remaining positive on the international front. While the Webjet OTA and Online Republic businesses remain impacted by the shutdowns in the ANZ region, management remains confident of Webjet's ability to grow market share as reopening recovers."
