On Friday, Macquarie analyst Aditya Suresh adjusted the price target for MakeMyTrip (NASDAQ:MMYT), increasing it to $105.00 from the previous target of $74.00. The company, currently valued at $12.33 billion, trades at a P/E ratio of 53.4x, and according to InvestingPro analysis, appears to be trading above its Fair Value. Despite the significant change in the price target, the firm has decided to maintain a Neutral rating on the shares.
Suresh’s commentary highlighted the positive structural tailwinds anticipated to propel MakeMyTrip’s revenue growth at a high-teens compound annual growth rate (CAGR), building on its impressive 28.95% revenue growth over the last twelve months.
Additionally, a trend towards premiumisation in the bookings mix was noted as a contributing factor. The analyst’s decision to raise the target price to $105 is based on a shift from a discounted cash flow (DCF) model to a relative value-based target price-to-earnings (PE) multiple. This multiple is set at…
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