Morgan Stanley analyst Gaurav Rateria has maintained their bullish stance on MMYT stock, giving a Buy rating on July 10.
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Gaurav Rateria has given his Buy rating due to a combination of factors that highlight MakeMyTrip’s strong performance and potential for growth. The company has demonstrated a resilient and diversified portfolio, with a steady revenue growth rate of 16-18% CAGR. This growth is supported by an increase in the bus segment, a rising share of international business, and the ability to drive growth in the hotels segment despite industry challenges.
Moreover, MakeMyTrip has maintained a steady market share in a competitive environment and has shown improving margins and free cash flow, which enhance its balance sheet. The company generated over $40 million in free cash flow during the quarter, strengthening its financial position and limiting the potential for irrational competition. Additionally, the management’s confidence in achieving high teens to 20% top-line growth further supports the positive outlook, leading to an increased price target of $118.
In another report released on July 10, J.P. Morgan also maintained a Buy rating on the stock with a $110.00 price target.