Mondee price target lowered to $5.50 from $10 at Roth MKM

Roth MKM analyst Darren Aftahi lowered the firm’s price target on Mondee to $5.50 from $10 and keeps a Buy rating on the shares. The company’s non-core asset divestiture has led to a reset in estimates and the Q3 earnings miss, though Mondee still reported favorable estimated organic growth of about 18%, a take rate expansion to 9.1%, and continued revenue diversification, the analyst tells investors in a research note. Roth MKM adds that it sees a reset in estimates, with the expectations of mid-teens organic growth in FY24 with modest margin expansion, although marketing has been potentially paused.