Strategic Expansion and Market Resilience Drive Buy Rating for MakeMyTrip
Morgan Stanley analyst Gaurav Rateria maintains a Buy rating for MakeMyTrip, setting a price target of $118.00. The company is expanding internationally and in non-air segments, showing growth despite domestic air market slowdown. MakeMyTrip prioritizes growth over profitability, increasing advertising spending. Despite market competition, it retains domestic air market share. Recent market correction enhances risk/reward profile, supporting the Buy rating.
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.
