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On Wednesday, H.C. Wainwright reiterated its Buy rating and $3.00 price target for Yatra Online (NASDAQ:YTRA), ahead of the company’s scheduled financial results announcement for the fourth quarter of fiscal year 2025. The firm’s analyst highlighted several factors that may influence the stock’s performance, including the broader market’s shift away from small-cap tech stocks amid rising macroeconomic uncertainties and the geopolitical tensions between India and Pakistan, which have affected companies with exposure to the region. According to InvestingPro data, the stock is currently trading at $0.85, with analysts maintaining a consensus Buy recommendation and a significant upside potential. InvestingPro subscribers can access 13 additional key insights about YTRA’s financial health and market position.
Despite a significant drop of 32.5% in Yatra Online’s share value in 2025, compared to a more modest 6.3% decline in the Russell 2000, H.C. Wainwright anticipates that the upcoming financial report may offer insights into domestic air travel trends and the company’s outlook for the remainder of the calendar year. The analyst also pointed out the potential growth in the Meetings, Incentives, Conferences, and Exhibitions (MICE) business, which is forecasted to expand at a compound annual growth rate (CAGR) of 5.2% through 2033, reaching a market value of $183.1 billion. InvestingPro analysis indicates the company has shown strong revenue growth of 55.7% in the last twelve months, with a healthy current ratio of 2.22, suggesting solid operational efficiency.
Yatra Online has been actively engaging with regulators to simplify its legal and corporate structure, which could significantly impact the stock, particularly if it leads to increased fungibility between its U.S.-listed and India-listed shares. Currently, there is an approximate 130.0% valuation premium on the India-listed shares over the U.S.-listed ones.
The financial report, expected before market open on Friday, May 30, may also include an update on the company’s efforts to address share fungibility issues. H.C. Wainwright believes these efforts could serve as a meaningful catalyst for Yatra Online’s shares. The firm continues to recommend that investors accumulate positions in Yatra Online, citing a favorable long-term risk-reward profile and the potential for improved financial results.
In other recent news, Yatra Online has been notified by the Nasdaq Stock Market of a potential delisting due to its share price not meeting the required minimum. The notice, dated April 15, 2025, indicates that Yatra’s shares failed to maintain the minimum closing bid price of $1.00 over a specified period. The company has until October 13, 2025, to regain compliance by ensuring its share price closes at $1.00 or higher for at least 10 consecutive business days. If Yatra does not meet this requirement by the initial deadline, it may qualify for an additional 180-day period to comply, provided it meets all other initial listing standards, except for the bid price. Yatra has expressed its intention to monitor the situation closely and may consider a reverse stock split, among other options, to regain compliance. However, there is no certainty that Yatra will achieve compliance within the given timeframe or maintain other listing requirements. This development highlights the challenges companies face in adhering to stock exchange regulations. The information is based on a press release from Yatra Online.
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