How might the Webjet (ASX:WEB) share price perform in 2022?

Many brokers have come to a consensus on what 2022 will likely bring the Webjet share price.

| More on:

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

The Webjet Limited (ASX: WEB) share price's performance in 2021 was often mixed.

The company's stock hit a low of $4.36 in May and a high of $6.89 in October.

At market close on Thursday, the Webjet share price finished trading at $5.19, just 2% higher than it was at the start of this year.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 11% year to date.

So, with the company's share's value staying relatively stagnant on the whole in 2021, what might 2022 have in store?

Here's what the experts predict.

A woman wearing a mask at the airport gets ready to travel again with Qantas.

Image source: Getty Images

What might 2022 bring for the Webjet share price?

In good news for the online travel agent's shareholders, brokers' consensus seems to be that the company's shares will be moving upwards next year.

Goldman Sachs popped a $6.90 price target on the Webjet share price earlier this month, maintaining its 'buy' rating.

Additionally, it predicted dividends will be resumed in financial year 2023, giving hope for a payout in the final leg of 2022.

It also wasn't worried about the Omicron variant, noting the company doesn't have much exposure to the world's most impacted regions.

UBS is also targeting $6.95 for the company's shares while Morgans' target is slight lower at $6.60.

That means the three leading brokers all believe that the Webjet share price has an upside of between 26% and 33%.

That bullishness is mirrored by Ausbil chair, chief investment officer, and head of equities Paul Xiradis.

Xiradis believes Webjet – as well as other travel shares – will see increased earnings in 2022 as borders continue to reopen.

Finally, the company itself is also predicting a successful 2022.

In its results for the first half of its financial year – which runs from 1 April to 31 March – the company predicted that over the course of its financial year 2022, its WebBeds business will become the leader in its market, its online travel agency will increase its market share, and that its GoSee business will undergo a "transformational opportunity".

The company expects it will reach pre-COVID-19 booking volumes sometime between October 2022 and March 2023.

Still, the company continues to routinely come in as one of the ASX's most shorted stocks.

That means not everyone is optimistic about the Webjet share price's future.

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 Broker Notes

Lion roaring in the wild, symbolising a rising Liontown share price.
Broker Notes

Up 117% in a year, should you still buy Liontown shares now?

A leading analyst delivers his verdict on the soaring Liontown share price.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Broker Notes

Buy, hold, sell: Bapcor, Challenger, and DroneShield shares

Analysts have given their verdict on these shares this week. Are they bullish, bearish, or something in between?

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Broker Notes

These ASX 300 stocks could be top buys offering 25%+ returns according to Bell Potter

The broker thinks the total returns on offer with these shares could be substantial.

Read more »

A silhouette of a soldier flying a drone at sunset.
Broker Notes

The DroneShield share price has soared 266% in a year. Time to take profits?

A leading expert offers his outlook for DroneShield’s surging shares.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to buy these shares.

Read more »

A young man goes over his finances and investment portfolio at home.
Broker Notes

Buy, hold, sell: CBA, QBE, and Qantas shares

Let's see what analysts are saying about these shares.

Read more »

Excited couple celebrating success while looking at smartphone.
Broker Notes

Why this ASX 200 share could be dirt cheap with a 7% dividend yield

Bell Potter is predicting 50% upside and a 7% dividend yield.

Read more »

A man raises his reading glasses in a look of surprise.
Broker Notes

Guess which ASX 200 stock could be worth $90 a share

Here's why one broker thinks this stock is heading much higher.

Read more »