Morgan Stanley analyst Gaurav Rateria maintained a Buy rating on Makemytrip today 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 influencing MakeMyTrip’s market position and growth potential. The company is strategically focusing on expanding its international business and non-air segments, which are showing significant growth despite a slowdown in the domestic air market. This shift is evident in the substantial year-over-year growth in international air and hotel revenues, as well as bus services.
Moreover, while competition in the market is intensifying, MakeMyTrip has managed to maintain its market share in the domestic air segment. The company is also prioritizing growth over profitability in the near term, as reflected in its increased advertising and promotional spending. Despite these challenges, the recent market correction has made the risk/reward profile more attractive, supporting the Buy rating.
Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MMYT in relation to earlier this year.