Are Webjet (ASX:WEB) shares still worth buying with travel opening up?

We take a look at one expert's forecast for the Webjet share price

| More on:
Man sitting in a plane seat works on his laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are plenty of bullish investors keeping their eye on the Webjet Limited (ASX: WEB) share price. Particularly, as Australia distances itself from its recent set of pandemic-induced lockdowns and gets closer to fully reopening.

But, with Western Australia not expected to open its borders until February and rising COVID-19 cases in parts of the Northern Hemisphere, are Webjet shares a good buy?

Here's what Ausbil chair, chief investment officer, and head of equities Paul Xiradis thinks.

At the time of writing, the Webjet share price is $5.63, 1.05% lower than its previous close.

Is the Webjet share price a buy?

Webjet fans rejoice — the person charged with much of Ausbil's $15.8 billion of funds under management is bullish on the online travel agent's share price.

Xiradis believes Webjet and its S&P/ASX 200 Index (ASX: XJO) travel peers could be a buying opportunity for financial year 2022.

He has a positive outlook for Webjet's earnings growth ahead of the reopening of borders. Additionally, Xiradis states he expects Webjet will see its earnings increase as Australia distances itself from the September quarter's lockdowns.

However, not everyone is as bullish on Webjet's stock or its upcoming half-year results.

The company continued to make it onto The Motley Fool Australia's weekly list of the most shorted shares during November. As of yesterday, 9.3% of Webjet's shares are in short positions.

As Webjet recently shifted its financial year to run from 1 April to 31 March, the company is set to publish its earnings for the first half of financial year 2022 tomorrow. Thus, it stands to reason short-sellers might be expecting bad news.

Right now, the Webjet share price is 10% higher than it was at the start of 2021. However, it has fallen 8% over the last 30 days.

It's likely that many eyes will be on it again today to see how Australia's most recent lockdowns affected the company's business.

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 Bruce Jackson.

More on Travel Shares

Man sitting in a plane looking through a window and working on a laptop.
Travel Shares

What does Macquarie think Web Travel Group shares are worth?

Is the broker bullish or bearish? Let's find out.

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Web Travel share price rockets 13% on market leading full-year growth

Investors are sending Web Travel shares soaring today. Here’s why.

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

$10,000 invested in Qantas shares 5 years ago is now worth

Let's see what happened if you were brave and bought the Flying Kangaroo's shares in 2020.

Read more »

Woman on a tablet waiting in for her flight in an airport and looking through a window.
Travel Shares

Why have Qantas shares outperformed Flight Centre shares by more than 100% over the past 12 months?

The two share prices are travelling in opposite directions.

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

Qantas share price slips amid looming $121 million fine

Qantas continues to face legal issues stemming from the Covid pandemic years.

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Up 78% since April, why is the Webjet share price taking off again today?

Webjet shares have soared 78% since 4 April and are lifting off again today. But why?

Read more »

a young woman looks at here phone as she strides out in an airport dragging her wheelie bag behind her and smiling widely.
Travel Shares

Would I buy Qantas shares right now?

This ASX travel share has flown higher. Is it a buy?

Read more »

a woman drawing image on wall of big fish about to eat a small fish
Mergers & Acquisitions

Guess which ASX All Ords stock just received a takeover offer

A private equity firm has its eyes on this stock.

Read more »