Insights

To buy, hold or sell? Experts weigh in on the Webjet (ASX:WEB) share price

An experts take on whether Webjet could be a buy, hold or sell.
The post To buy, hold or sell? Experts weigh in on the Webjet (ASX:WEB) share price appeared first on The Motley Fool Australia. –

The Webjet Limited (ASX: WEB) share price has been range bound since November last year when Pfizer released its initial COVID-19 vaccine trial results.

Webjet shares have struggled to hold above $6 but managed to find plenty of buying support around the mid-$4 level.

Encouragingly, Webjet shares have pushed 5% higher in September and are testing the upper bound of the range.

In an article featured on Livewire, Nathan Hughes from Perpetual Limited (ASX: PPT) and Mike Murray from Australian Ethical Investment Limited (ASX: AEF) were asked about their thoughts on the Webjet share price.

What do experts think about the Webjet share price?

Murray was cautiously optimistic about Webjet, slating it as a “reopening play” but concerned about how much of that was already priced into today’s share price.

“I just wonder how much of the heavy lifting has already been done. There are probably twice as many shares on issue now than there were a couple of years ago.”

“The enterprise value would have recovered back to really pre-COVID levels. And so I don’t really want to pay the current price for it, but it’s an interesting business,” he said.

Perhaps a lower Webjet share price might have earned a more positive view from Murray, but he ultimately said it was a “hold”.

Hughes said that “there’s no doubt they’ll [Webjet] enjoy a really strong recovery” but was far more critical about the company’s valuation and balance sheet.

“But I think those salient points Mike made around the enterprise value and just how much of the recovery is baked into today’s share price. There are a lot more shares on issue and there’s also some convertible debt on the balance sheet, as well, so that gives me some pause,” he said.

Hughes also pointed at Webjet’s business model as a potential red flag in the long-term.

“.. a trend we’ve seen in a lot of industries, is a lot of businesses are going more direct to consumer and controlling their own distribution. And so, from that perspective, I just wonder about the long-term sustainability of Webjet’s B2B model,” he added.

The post To buy, hold or sell? Experts weigh in on the Webjet (ASX:WEB) share price appeared first on The Motley Fool Australia.

Should you invest $1,000 in Webjet right now?

Before you consider Webjet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Webjet wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why the Webjet (ASX:WEB) share price has soared 24% in 4 weeks
These are the 10 most shorted ASX shares

The Webjet (ASX:WEB) share price is nearing its 52-week high. Is now the time to buy?
Here’s why the Webjet (ASX:WEB) share price is up 50% this last year
How have ASX travel shares performed during the August 2021 earnings season?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!