MakeMyTrip Target Raised to $130 Amid Steady Growth
BofA Securities analysts increased their price target for MakeMyTrip (NASDAQ:MMYT) to $130 from $119, maintaining a Buy rating on the stock. The upward revision reflects confidence in the company's solid business momentum and its ability to capitalize on a recovering travel market.
The analysts noted slight adjustments to earnings forecasts, with 2026-27 EPS estimates raised by 1.5-1.7% due to steady operational performance. However, 2025 EPS projections were lowered by 2.2%, primarily due to non-cash translation impacts stemming from the recent depreciation of the Indian rupee against the U.S. dollar. Rolling forward the discounted cash flow model contributed to the higher price target.
MakeMyTrip is well-positioned to benefit from the ongoing recovery in travel demand, supported by its strong market presence and relatively low competition in the sector. The company is also expected to achieve robust growth alongside margin expansion. Additionally, the recently announced $150 million share buyback provides a layer of downside protection for the stock, enhancing investor confidence.
| Symbol | Price | %chg |
|---|---|---|
| SONA.JK | 3830 | -0.52 |
| PANR.JK | 850 | -2.94 |
| 032350.KS | 10800 | -1.11 |
| 039130.KS | 49850 | -3.71 |
MakeMyTrip (MMYT) Anticipates Strong Quarterly Financial Performance
MakeMyTrip (NASDAQ:MMYT) is on the brink of revealing its financial performance for the quarter ended March 2024, with expectations set high by Zacks Equity Research. The online travel giant is forecasted to unveil a notable year-over-year growth in earnings, pegged at $0.26 per share, a 23.8% jump from the previous year. This anticipated increase is not just limited to earnings; revenues are also expected to surge by 31.4% to reach $195.15 million. Such optimistic projections are underpinned by a recent upward revision of the consensus EPS estimate by 29.17% over the last 30 days, signaling a positive shift in analyst sentiment towards the company's business outlook and potential performance.
The financial community is closely watching MakeMyTrip's earnings, especially given the company's track record of exceeding consensus EPS estimates in three of the last four quarters. In its most recent quarter, MMYT didn't just meet expectations; it surpassed them by posting earnings of $0.35 per share against the anticipated $0.30, marking a surprise of +16.67%. This history of outperformance, coupled with a Zacks Rank of #1 (Strong Buy), positions the company favorably in the eyes of investors. However, the Zacks Earnings ESP (Expected Surprise Prediction) model indicates an Earnings ESP of 0%, suggesting that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, which introduces a layer of uncertainty regarding an earnings beat this time around.
Amidst these financial projections, MakeMyTrip's stock performance adds another layer of intrigue. Currently trading at $72.68, the stock has experienced a notable uptick of $0.87 or 1.21% in a recent session, oscillating between a low of $69.81 and a high of $72.98. This performance is part of a broader trend that has seen MMYT's shares climb from a yearly low of $25.08 to a high of $77.3, reflecting a robust investor confidence and market valuation of approximately $7.65 billion. Such market dynamics underscore the company's resilience and growth trajectory, even as it navigates the challenges posed by macroeconomic uncertainties, including inflation and high interest rates, which have been particularly taxing for the Zacks Internet - Delivery Services industry.
Despite these macroeconomic headwinds, MakeMyTrip, alongside its industry peers, is strategically poised for growth, leveraging the increasing internet penetration in emerging markets, a burgeoning middle class, and the widespread adoption of smartphones. The company's focus on cost-control measures and strengthening its hotel business, especially in light of improving travel conditions post-pandemic, are pivotal strategies expected to drive its future success. However, the downward revision of the Zacks Consensus Estimate for MakeMyTrip's fiscal 2024 earnings to $1.13 per share from $1.17 in the past 60 days signals potential challenges ahead. Nonetheless, MakeMyTrip's strategic initiatives aimed at adapting to consumer preferences and technological advancements may well equip it to navigate through the industry's current challenges, maintaining its growth momentum in the competitive landscape.
MakeMyTrip Reiterated With Buy Rating at Citi
Citi analysts reaffirmed a Buy rating and a $43.00 price target on MakeMyTrip (NASDAQ:MMYT). The analyst highlighted positive catalysts for MakeMyTrip, driven by resilient travel demand and strong expectations for the first quarter.
Notably, domestic airline ticketing has shown continued momentum through May 2023, and the hotel sector has experienced decent occupancy trends and sustained high average room rates, as indicated by RBI data in April 2023.
Despite MakeMyTrip's improving fundamentals and a favorable competitive environment among online travel agencies (OTAs), the stock has not participated in the broader NASDAQ/tech rally, with only a 2% year-to-date increase compared to the Nasdaq-100's 39% rise. Nonetheless, the analyst maintains a positive outlook on MakeMyTrip and sees approximately 54% upside potential in their target price.
