Analyst Scott Buck of H.C. Wainwright reiterated a Buy rating on Yatra Online (YTRA – Research Report), retaining the price target of $3.00.
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Scott Buck has given his Buy rating due to a combination of factors that highlight Yatra Online’s strong performance and growth potential. The company has shown significant strength in its corporate travel and MICE (Meetings, Incentives, Conferences, and Exhibitions) segments, which have offset weaker trends in the B2C sector. Notably, Yatra Online has successfully onboarded 35 new corporate clients, boosting its annual billing potential significantly.
Furthermore, the acquisition of Globe Travels has bolstered the company’s position, enabling it to aim for a top-three spot in the Indian MICE market ahead of schedule. This market is projected to grow substantially, offering Yatra a unique opportunity to capture more market share. Additionally, potential regulatory changes could enhance the fungibility between U.S. and Indian shares, acting as a catalyst for the stock. Despite some strategic adjustments leading to lower margins, the company is expected to achieve 20% revenue growth and 30% adjusted EBITDA growth, supporting the Buy rating with a $3 price target.