On Wednesday, MakeMyTrip (NASDAQ:MMYT) experienced a shift in stock rating as Axis Capital (NYSE:) Limited adjusted its stance on the company. The travel services provider was downgraded from ‘Buy’ to ‘Add’, although its price target saw an increase to $110 from the previous $90.
The adjustment in rating comes as the company has demonstrated consistent growth outperformance compared to its peers through fiscal years 2021 to 2024. However, the analyst at Axis Capital Limited cited “increasing evidence of demand normalization” as a factor that may interrupt the robust upward trend MakeMyTrip’s stock has enjoyed, surging over 150% in the past year.
The new price target of $110 is based on a valuation multiple of 40 times the expected enterprise value to EBITDA for September 2026, which is an increase from the previous multiple of 35 times. This revision reflects a more conservative outlook for fiscal years 2026 and 2027, despite the firm’s belief in MakeMyTrip’s advantageous…