The Webjet Limited (ASX: WEB) share price has taken off in 2022 despite volatility impacting the S&P/ASX 200 Index (ASX: XJO).
Since the beginning of the year, the online travel agent's shares have risen by 17% following positive investor sentiment. In contrast, the benchmark index has fallen by 2% over the same time frame.
At yesterday's market close, Webjet shares finished the day 4.83% higher to $6.08 a pop.
What's driving Webjet shares higher?
With the re-opening of Australian borders for fully-vaccinated tourists set on 21 February, the Webjet share price has soared.
The announcement made on 7 February by the Morrison government sent Webjet shares 6.17% higher on the day. This was followed by another 7.44% gain on 8 February.
While COVID-19 continues to be on a steady decline, there is hope that the world is starting to move to a post-pandemic phase.
Some countries like Denmark and Sweden have even completely removed restrictions and accepted to live with the virus.
In the United Kingdom where Webjet operates, the British government ended the mask mandate and vaccine passports. Fully vaccinated travellers are no longer required to take a test on or before arrival. This means that passengers can freely travel to the country, encouraging a resurgence in the tourism industry.
Looking ahead, Webjet is scheduled to report its FY22 results towards the backend of May 2022.
Is this a buying opportunity?
The good news for investors is that a number of brokers believe that the Webjet share price is attractively valued.
The team at Morgans raised its price target by 6.5% to $6.60, which implies a potential upside of 8.5%.
In addition, Ord Minnett also lifted its outlook by 2.7% to a more bullish price of $7.31 apiece. This represents a potential upside of 20% from where it trades today.
Lastly, Swiss investment firm, UBS increased its appraisal on Webjet shares by 1.5% to $6.95. Its analysts clearly believe that there is still significant value in the online travel agent and that a recovery is inevitable.
Webjet share price summary
It's been a rollercoaster 12 months for Webjet investors, with its shares up 27% over the period.
Based on valuation grounds, Webjet has a market capitalisation of around $2.31 billion, with approximately 380.51 million shares on issue.
