If you're looking for big returns, then the ASX 200 shares listed below in the travel sector could be for you.
These ASX 200 travel shares have been named as buys by Morgans and tipped to climb 30% or more from current levels.
Here's what the broker is saying about them:
Qantas Airways Limited (ASX: QAN)
Morgans believes that the flying kangaroo is an ASX 200 share to buy.
The broker currently has an add rating and $8.50 price target on the airline operator's shares. This implies a potential upside of almost 40% for investors over the next 12 months.
Morgans feels that Qantas' shares are cheap. Especially considering pent-up travel demand, its positive outlook, and its strong balance sheet. It explains:
QAN is now our preferred pick of our travel stocks under coverage given it has the most near-term earnings momentum. Looking across travel companies globally, airlines are now in the sweet spot given demand is massively exceeding supply. QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings, a much stronger balance sheet, a better domestic market position, a higher returning International business and more diversification (stronger Loyalty/Freight earnings). The strong pent-up demand to travel post-COVID should result in a healthy demand environment for some time, underpinning further EBITDA growth over FY24/25.
Webjet Limited (ASX: WEB)
Another ASX 200 share that could be a buy according to Morgans is Webjet.
The broker currently has an add rating and $8.97 price target on the online travel agent's shares. This implies a potential upside of almost 30% for investors over the next 12 months.
Morgans believes Webjet's shares are trading at an attractive level. Particularly given the positive outlook of its WebBeds business. It said:
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. Management also wasted a crisis and cost reduction initiatives will reduce its cost base by 20% across the group once the business returns to scale.
