MakeMyTrip Limited (MMYT): Merger With Ibibo Game Changing - Jefferies
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Jefferies analyst, Arya Sen, reiterated his Hold rating on MakeMyTrip (NASDAQ: MMYT) but believes Makemytrip's merger with Ibibo group is a game-changer for the company (and the sector). The trasaction combines the top two players in the Indian OTA space and could pave the path to profitability by reducing competitive intensity and promotional spend.
The analyst stated "based on transaction data and FY15 financials, we estimate US$260mn net revenues for the combined entity in FY16 which could rise to US$500mn by FY18, with US$300mn coming from standalone hotel booking".
No change to the price target of $19.80.
Shares of MakeMyTrip closed at $29.45 yesterday.
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