The Webjet Limited (ASX: WEB) share price is catching the eye on Thursday.
In afternoon trade, the online travel agent's shares are up 2.5% to $6.84.
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Why is the Webjet share price pushing higher?
Investors have been buying the company's shares today after brokers responded positively to yesterday's half-year results.
For example, the team at Goldman Sachs has responded by retaining its buy rating with a new price target of $8.10. Based on the current Webjet share price, this implies a potential upside of 18% for investors over the next 12 months.
Commenting on the result, Goldman said:
WEB reported 1H24 results, with TTV/Revenue +4% vs GSe and EBITDA +0.2% vs GSe. Mgmt provided FY24 guidance of $180-190m EBITDA modestly lower than GS $192m but in line with Factset consensus.
As for why it believes investors should buy Webjet shares, it said:
Our Buy thesis on WEB is premised on 1) WEB demonstrating strong cash generation as the market recovers while current valuation continues to be impacted by macro concerns 2) We believe WEB's Bedbanks business offers a structural growth opportunity and expect it to drive scale benefits, underpinned by system changes and ERP upgrades as WEB goes through the recovery cycle. 3) We believe the OTA business is exposed to the right channels with the ongoing shift towards digital bookings likely to aid WEB in growing its TAM as well as market share.
Elsewhere, Citi has retained its buy rating with a $7.90 price target. It commented:
Our back of the envelope suggests material growth above the market, which we expect to continue and offset slowing cyclical factors.
All in all, these analysts appear to believe Webjet could be a good option if you're looking for exposure to the travel sector.
