MakeMyTrip’s Growth Potential: A Buy Rating Amidst Strategic Expansion and Market Strength

Morgan Stanley analyst Gaurav Rateria maintained a Buy rating on Makemytrip (MMYT – Research Report) yesterday and set a price target of $120.00.

Gaurav Rateria has given his Buy rating due to a combination of factors that highlight MakeMyTrip’s potential for sustained growth. Despite facing short-term challenges in demand and supply, the company is committed to achieving over 20% top-line growth and maintaining adjusted EBIT margins of 1.8-2% of gross bookings. This optimism is supported by MakeMyTrip’s ability to tap into new demand segments, such as international air and hotel revenues, which have seen significant year-over-year increases.
Additionally, the competitive environment remains favorable, with MakeMyTrip maintaining a strong domestic air ticketing market share and a high rate of repeat business. The company’s strategic focus on organic growth, technology investments, and potential acquisitions further reinforces its market position. These factors, combined with a well-defined capital allocation strategy, contribute to Rateria’s positive outlook on MakeMyTrip’s stock.

In another report released today, Citi also maintained a Buy rating on the stock with a $125.00 price target.