Morgan Stanley analyst Gaurav Rateria maintained a Buy rating on Makemytrip yesterday and set a price target of $118.00.
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Gaurav Rateria has given his Buy rating due to a combination of factors that highlight MakeMyTrip’s strong market position and growth potential. One key reason is the company’s successful diversification beyond its core air segment, which has allowed it to maintain robust revenue growth despite challenges in the domestic air market. This diversification includes expanding into areas such as cabs and train ticketing, which has contributed to a consistent revenue increase.
Additionally, MakeMyTrip has demonstrated leadership in profitability within the online travel agency sector. Despite increasing advertising and promotional spending, the company has managed to improve its operating profit margins, setting it apart from competitors. The company’s ability to maintain a dominant market share and superior margins, along with a strong balance sheet, further supports the Buy rating. These factors collectively suggest a positive outlook for MakeMyTrip’s stock performance.