On Wednesday, Citi maintained a Buy rating on MakeMyTrip (NASDAQ:MMYT) and increased its price target to $93 from $85. The travel company’s fourth-quarter performance exceeded expectations, with gross bookings and adjusted revenue surpassing estimates by 2% and 4%, respectively. MakeMyTrip’s adjusted EBIT also outperformed, coming in 11% higher than anticipated.
MakeMyTrip’s advertising and promotional spend was notably restrained, accounting for only 4.6% of the gross booking value, which is a decrease from previous quarters and below Citi’s forecast. This disciplined spending has been instrumental in the company’s growing profitability. MakeMyTrip’s diverse platforms serve both B2C and B2B customers, strengthening its position in the travel distribution market.
The firm’s strategic focus on expanding its accommodation offerings is set to capitalize on the robust demand in both leisure and business travel sectors. Additionally, MakeMyTrip has seen significant growth in its ancillary…