The Webjet Limited (ASX: WEB) share price has rebounded strongly over the past couple of weeks.
After reaching a low of $5.24 on 12 April, the online travel agent's shares are on the mend.
At the time of writing, Webjet shares are taking a breather, down 0.82% to $6.07. This means despite the slight retracement; they are up 12.6% over the last two weeks.
What's driving Webjet shares higher?
As more countries begin to relax their COVID-19 restrictions, ASX investors have become increasingly confident in the sector. Particularly, given that passengers are now able to travel quarantine-free to most destinations.
Subsequently, this has driven the Webjet share price higher due to pent-up demand across the travel market.
And with the world moving on and now accepting to live with the virus, normality is just around the corner.
Webjet has been busy taking advantage of its opportunities while the market has been in a downturn.
In its FY22 first-half results, the company noted that competition has decreased due to financial pressures impacting the travel industry.
As such, management highlighted that the WebBeds business is poised to deliver significant revenue growth.
In particular, Webjet has focused on expanding its domestic offering, with increased penetration into the North American B2B market. This segment is the company's second biggest market, behind the Asia Pacific region in terms of booking numbers.
Notably, with the Omicron variant decreasing in key markets, this is likely to lead to a bumper performance for Webjet.
Australia, the United Kingdom, Europe and the United States are now almost free of travel restrictions.
Webjet also boosted and optimised its API (application programming interface) connections for key business to consumer (B2C) clients. It stated that the financial strength of the company makes it a trusted partner for hotel suppliers.
All eyes will be on Webjet FY22 results which is scheduled to be reported towards the backend of next month.
Is this a buying opportunity?
The team at Citi upgraded its outlook to buy from neutral, lifting its price target by 0.6% to $6.50 per share. This implies a potential upside of 7% from where Webjet shares trade today.
On the other hand, Macquarie had a bearish tone, cutting its rating on the company's shares by 4.9% to $5.80. For context, this represents a downside of around 4.5%.
Webjet share price summary
It's been a rollercoaster 12 months for Webjet investors, with its shares up 13% over the period.
When glancing at the year to date, its shares are up around 17%.
Based on valuation grounds, Webjet has a market capitalisation of around $2.3 billion.
