Vijit Jain, an analyst from Citi, maintained the Buy rating on Makemytrip (MMYT – Research Report). The associated price target remains the same with $125.00.
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Vijit Jain’s rating is based on several strategic financial maneuvers by Makemytrip that indicate a promising outlook for the company. The company’s decision to enter a share repurchase agreement with TCOM is a significant move, as it aims to reduce TCOM’s Class B shareholding from over 45% to less than 20%. This transaction, which involves issuing new equity and convertible debt, as well as potentially utilizing cash reserves, suggests a strategic positioning for a potential India IPO in the future.
Additionally, the repurchase agreement is structured in a way that avoids dilution of Makemytrip’s shares, which is a positive signal for investors. The reduction in TCOM’s voting power and board nomination rights further strengthens Makemytrip’s independence and governance. These factors, combined with an expected share price return of 23.9%, underpin Jain’s Buy rating for the stock.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $126.00 price target.