On Thursday, BofA Securities updated its outlook on MakeMyTrip (NASDAQ:MMYT), increasing the price target to $119 from $112, while maintaining a Buy rating on the shares.
The firm acknowledged the company’s performance in what is typically a slower quarter, highlighting a robust year-over-year top-line growth of 22%, which surpassed expectations by 3%. The earnings before interest, taxes, depreciation, and amortization (EBITDA), as well as earnings before interest and taxes (EBIT), were reported to be largely in line with projections.
MakeMyTrip’s revenue increase was attributed to a 20% growth in both flights and hotels segment revenues year-over-year. The company’s second-quarter EBITDA stood at $32.7 million with a margin of 14.2%. Although net income was reported at $18 million, it was slightly below BofA Securities’ estimates, primarily due to higher finance costs.
Key performance indicators (KPIs) showed that the air ticketing net revenue margin rose to 6.8% in the second…
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