Mondee price target lowered to $3.25 from $4.10 at Roth MKM

Roth MKM lowered the firm’s price target on Mondee to $3.25 from $4.10 but keeps a Buy rating on the shares after its wider than expected Q2 loss. The company’s working capital constraints and softening demand impacted Q2 and into Q3, leading to a lower outlook for FY24, the analyst tells investors in a research note. Despite weaker demand however, Mondee’s focus on higher take rate offerings like packages could help capitalize on consumer price sensitivity, diversify its transaction mix, and expand margins, the firm added.