As the benchmark S&P/ASX 200 Index (ASX: XJO) has smoothed out to a 7% loss this year to date, Webjet Ltd (ASX: WEB) shares have drifted higher instead.
The Webjet share price has landed itself in the green this year to date and are up more than 12% in that time.
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Targets already priced in, broker says
The team at JP Morgan reckon the outlook for travel in Australia is improving and that's matched by Webjet's management.
In a recent note, it was balanced on its view for the company. One highlight it says is "WebBeds' TTV is tracking ahead of pre-pandemic levels in May," it said. The segment is "expected to see continued strong sequential monthly TTV numbers heading into the Northern Hemisphere summer."
Although, while those at JP Morgan say Webjet can reach its medium-term revenue and profit targets, the broker understands this to be mirrored in the share price.
"[W]e believe the pathway to management's medium-term target increasingly looks achievable as the travel industry recovers, [however] we believe this is currently reflected in the share price," it said.
It values the company at $5.80 per share on a neutral recommendation , implying that shares might be fairly valued when trading at $5.83 at the time of writing.
Meanwhile, the consensus of analyst estimates has Webjet valued at $5.80 per share as well, according to Bloomberg data, adding further weight to that argument.
Despite that, there are brokers who value Webjet as high as $7.48 per share and as low as $3.89 per share from this list.
Sentiment is split too, with exactly 41.7% of brokers each valuing Webjet a buy or a hold right now, with just two analysts rating it a sell.
It remains to be seen if positive earnings data from peer airline stocks is also on JP Morgan's radar when pricing Webjet. Nevertheless, airline travel appears to be the main talking point in the stock.
Over the last 12 months the Webjet share price has clipped a 15% gain.
