© Reuters.
On Wednesday, MakeMyTrip (NASDAQ:MMYT), an online travel company, was downgraded by Macquarie from Outperform to Neutral, though its price target was raised to $60 from the previous $50. The company is projected to see its overall gross bookings increase from $8 billion in fiscal year 2024 to $17 billion by fiscal year 2028.
MakeMyTrip is recognized as maintaining a dominant position in the market, holding a 30-40%+ market share in both air and hotel segments. As the firm’s higher margin accommodation business and ancillary services become a larger part of its revenue mix, Macquarie anticipates an improvement in MakeMyTrip’s EBITDA/Gross Booking (NASDAQ:) Value (GBV) margin by 100 basis points over the next three years, reaching 2%—and potentially 2.5% in a steady state.
The travel company’s revenue compound annual growth rate (CAGR) is modeled at 23% over three years and 17% over ten years starting from fiscal year 2024. EBITDA growth is expected to outpace…