Morgan Stanley analyst Gaurav Rateria maintained a Buy rating on Makemytrip today and set a price target of $118.00.
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Gaurav Rateria’s rating is based on MakeMyTrip’s steady market share in the domestic air segment and its ability to gain share in other areas, despite a challenging competitive environment. The company has effectively utilized marketing expenditures to drive growth while still achieving margin improvements, demonstrating strong financial management.
Additionally, MakeMyTrip has shown robust cash flow generation and has implemented a comprehensive capital allocation strategy, including an increased buyback amount. Although there were some misses in recent financial results, such as slower gross booking growth and higher FX translation losses, the core fundamentals remain strong. Rateria views the current market weakness as a buying opportunity, supported by the company’s strategic investments, including the development of an AI assistant to enhance its platform.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $115.00 price target.
Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MMYT in relation to earlier this year.