The Webjet Limited (ASX: WEB) share price is hitting blue skies today, reaching an intraday high of $5.48 — up 5.2% on its previous close. It is currently trading at $5.39, up 3.46%.
Fellow ASX travel shares are also in the green, with the Flight Centre Travel Group Ltd (ASX: FLT) share price up 1.18% to $16.24, and the Qantas Airways Limited (ASX: QAN) share price up 0.76% to $5.29.
These ASX travel companies haven't announced any price-sensitive news today.
Why is the Webjet share price up?
The broader market is up today, with the S&P/ASX 200 Index (ASX: XJO) rising 1.17%.
Overnight, several international stocks traded strongly, which might be having a positive bearing on the Webjet share price today.
American Airlines Group Inc (NASDAQ: AAL) shares went up 3.35%. United Airlines Holdings Inc (NASDAQ: UAL) and Southwest Airlines Co (NYSE: LUV) shares finished up 3.3%.
What do the experts think about Webjet?
As my Fool colleague James reported yesterday, Morgans thinks Webjet is a buy in September. The broker likes Webjet shares at this price level, based on its earnings estimate for the recovery year of FY24.
Morgans has an add rating on Webjet with a share price target of $6.40. That's a potential 18.7% upside over the next 12 months.
The broker commented:
Based on our forecasts, WEB is trading on an FY24 recovery year PE which is at a discount to its five-year average PE (pre-COVID). Its WebBeds (B2B) business is highly leveraged to the northern hemisphere summer holiday season which is forecast to be strong. Webjet OTA is leveraged to ANZ domestic and international travel.
My Foolish friend Cathryn also reports that Macquarie has slapped an outperform rating on the stock. The broker did so after Webjet's annual general meeting on 31 August.
Macquarie has a 12-month price target of $6.15 for Webjet shares — a potential 14% upside.
Explaining its upgraded rating, Macquarie said:
Despite some macro risks on the horizon, the medium-term growth outlook is favourable and underpinned by market share gains, ongoing tech investment, and a full recovery in travel markets.
