The Webjet Limited (ASX: WEB) share price has started the week in the red.
In afternoon trade, the online travel agent's shares are down 2.5% to $5.08.
This latest decline means the Webjet share price is now down 20% from its March high.
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Why is the Webjet share price dropping?
The weakness in the Webjet share price today comes despite there being no news out of the company.
However, potentially weighing on its shares today was a broker note out of Macquarie Group Ltd (ASX: MQG) relating to rival Flight Centre Travel Group Ltd (ASX: FLT).
According to that note, the broker has downgraded Flight Centre's shares to a neutral rating and cut the price target on them by 11% to $15.50.
That note reveals that Macquarie has pushed back its earnings recovery estimate for Flight Centre by six to nine months due to recent lockdowns in Australia following the outbreak of the COVID-19 Delta variant.
It suspects that Flight Centre's total transaction value (TTV) will now only reach 65% of FY 2019 levels in 2023. This compares to its previous expectation of hitting 80% at that point.
One positive, though, is that corporate demand remains robust thanks to the government and mining sectors.
Is Webjet's weakness a buying opportunity for investors?
Despite downgrading Flight Centre, Macquarie hasn't made any changes to its Webjet recommendation at this stage.
It currently has an outperform rating and $6.35 price target on the company's shares. Based on the current Webjet share price, this implies potential upside of 25% over the next 12 months.
Another broker that might see the weakness in the Webjet share price as a buying opportunity is UBS.
Late last month it put a buy rating and $5.90 price target on its shares. Its analysts see the company as a top re-opening option for investors.
