Web Travel Group Ltd (ASX: WEB) shares are in the green in early afternoon trade on Wednesday. At the time of writing, the shares are 1.26% higher at $3.625 a piece.
The increase is welcome news for investors after the online travel booking services company's shares crashed 41% to an 11-year low on Friday last week. The share price drop came after the ASX 200 travel stock announced that the Special Delegation of the Balearic Islands of the Spanish Tax Agency had commenced an audit of its Spanish subsidiary.
The audit will review direct taxes paid (and owed) between April 2021 and March 2024, as well as indirect taxes for the period between January 2022 and December 2025.
The news sent tongues wagging, and investors rushed to hit the sell button in a state of panic.
All eyes are still on the ASX travel stock as we wait to hear the outcome of the audit and see what will happen to the share price next.
Image source: Getty Images
What has happened to Web Travel Group shares this week?
Web Travel Group shares have recovered 10% of their losses since the ASX opened on Monday, when the company issued an update to investors.
Management reassured investors that only the company's Spanish subsidiary is being audited.
Web Travel Group also said it does not expect any material earnings impact from the Spanish tax review.
The company reiterated its full-year FY26 earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance of between $147 million and $155 million. That represents a 22% to 29% increase on the company's FY25 EBITDA of $121 million.
While the uptick this week is positive, the shares have a long way to go before the price recovers to pre-crash levels.
What do analysts expect from the stock this year?
Despite the downturn over the past week, analysts remain very optimistic about the company's outlook for 2026.
Data shows that 12 out of 14 analysts hold a buy or strong buy rating on the stock. And the maximum target price is $7.40 a piece. That implies a 102.19% upside at the time of writing!
UBS has a bullish share price target on the stock of $6.15. The broker seems to be unfazed by the Spanish tax audit, saying that the company had been audited in Spain in 2024, and management "emphasised they consider this audit immaterial" on an investor call this week.
The team at Jarden also has a bullish price target of $5.70 per share. The team said the audit is immaterial and expects the company to remain on track to meet its growth targets this year.
