Makemytrip, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Sachin Salgaonkar from Bank of America Securities reiterated a Buy rating on the stock and has a $115.00 price target.
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Sachin Salgaonkar’s rating is based on a combination of factors that suggest a favorable outlook for Makemytrip’s stock. Despite the potential short-term impact of Indigo flight cancellations, which could affect domestic flight growth and earnings estimates, Salgaonkar believes that the overall effect on Makemytrip’s valuation will be limited. This is primarily because the company’s value is largely derived from its hotel segment, which is less likely to be affected by these disruptions.
Furthermore, concerns about the impact of agentic AI on Makemytrip’s business model appear to be overstated. While there are fears of disintermediation risks from AI platforms, Salgaonkar expects minimal impact on Makemytrip, as the fulfillment process will still rely on online travel agents. Additionally, the potential use of AI as a traffic acquisition channel could offset costs in other areas. With a strong EBITDA growth forecast and a favorable risk-reward profile after recent stock underperformance, Salgaonkar maintains a Buy rating for Makemytrip.