The Webjet Ltd (ASX: WEB) share price has failed to take off in recent times following a broader market sell-off on the S&P/ASX 200 Index (ASX: XJO). This has led the online travel agent's shares to post a decline of 12% in the past month alone.
Nonetheless, Webjet shares are recovering ground today to edge 2.72% higher to $5.28 at the time of writing.
Why has the Webjet been so turbulent?
The Webjet share price has faced a tough time in 2022 as recovery of the travel market remains uncertain.
While Australia is continuing to deal with COVID-19, Webjet shares breathed a sign of life in early February. They reached a year to date high of $6.18 as investor optimism increased across the travel industry.
However, geopolitical tensions between Russia and Ukraine have sparked a regional war and sent the world in a tailspin.
Negative sentiment has rocked global markets with gross domestic product (GDP) predicted to slow in many countries, particularly in the United States.
In case you were wondering, GDP is an accumulation of the value of all finished goods and services a nation produces. It is used to measure the economic output of all sectors within an economy.
While the United States economy is now expected to grow more slowly and with Europe teetering on another recession, Webjet is feeling the impact. This is because a majority of the company's operations run in both North America and Europe, notably its WebBeds business.
Is a recovery on the cards for Webjet?
It's anyone's guess of when the Webjet share price will return to its 2022 highs, but with 9 months left, anything is possible.
A number of brokers weighed in with their thoughts on the company's shares following the company's FY22 first-half results.
Analysts at Morgan Stanley raised the 12-month price target for Webjet shares by 16% to $5.00 per share.
On the other hand, Credit Suisse slashed its outlook on the online travel agent's shares by 5.3% to $5.40.
Yet, Morgans had a more bullish outlook. The broker lifted its view on Webjet shares by 6.5% to $6.60.
Also following suit, the team at Macquarie cut their 12-month price target on Webjet shares by 8.3% to $6.10 apiece.
While each of the brokers have varying price points, it's worth noting that Morgans and Macquarie offer an attractive upside. Based on the current share price, this implies an increase of around 26% and 16%, respectively.
Looking ahead, Webjet is scheduled to report its FY22 results in May 2022.
Webjet share price summary
In the last 12 months, the Webjet share price has lost 10% following heavy selling by investors in February.
When looking year to date, the company's shares are relatively flat.
Based on valuation grounds, Webjet has a market capitalisation of around $1.99 billion, with approximately 380.5 million shares on issue.
