MakeMyTrip (MMYT) PT Raised to $130 at BofA Securities

BofA Securities analyst Sachin Salgaonkar raised the price target on MakeMyTrip (NASDAQ: MMYT) to $130.00 (from $126.00) while maintaining a Buy rating.

The analyst comments "MMYT delivered largely in-line 1Q revenues showing 16% YoY growth with air revenues growing 9%/hotels growth at 13.6%. Beyond the temporary disruptions (for domestic air and holiday packages) seen during 1Q, mgmt sees sentiment improving & the recovery trends for leisure destination gradually coming back. Mgmt targets to see high-teens to 20% growth (constant currency terms) and MMYT should sequentially be able to dial-up growth ahead. Key 1Q highlights: EBITDA at $46mn came in 11% ahead of BofAe and margins expanded 1.6pps qoq to 16.3%. This was largely led by lower other opex despite 16% yoy higher marketing (5.1% of gross bookings). Normalized EBIT in 1Q was $47.3mn with margins at 1.8% on gross bookings. Air ticketing net revenue margin was 6.8% while H&P margins were 17.7%. Net income of $26mn was 3% below BofAe largely due to higher finance costs & taxes. Post 1Q, we slightly increase EBITDA est, but EPS gets cut, mainly to account for some non-cash adjustments below EBIT. We roll- forward DCF & PO moves to $130 (vs $126). Reit. Buy as we continue to see MMYT a beneficiary of travel momentum and continued market leadership."

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