Makemytrip, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Sachin Salgaonkar from Bank of America Securities maintained a Buy rating on the stock and has a $130.00 price target.
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Sachin Salgaonkar has given his Buy rating due to a combination of factors that suggest a positive outlook for MakeMyTrip (MMYT). Despite recent challenges in domestic air traffic, such as seasonal slowdowns and external disruptions like runway repairs and adverse weather, the company is expected to achieve a 20% year-over-year revenue growth in FY26. This optimism is supported by high ticket prices and strong international air yields, which are likely to benefit MMYT due to its focus on mid-to-high-end users.
Additionally, MakeMyTrip’s other business segments, including hotels and buses, are experiencing robust momentum, which helps offset the softness in domestic air travel. The company is also expected to see a reduction in sales and marketing expenses, improving its margins. Furthermore, the pent-up travel demand, delayed by geopolitical tensions and natural events, is anticipated to boost bookings in the October to December period, potentially acting as a catalyst for the stock price. With low competitive intensity and advancements in AI technology, such as the Myra chatbot, MMYT is well-positioned to gain market share across its segments.
According to TipRanks, Salgaonkar is a 4-star analyst with an average return of 16.5% and a 54.05% success rate.