MakeMyTrip stock price target raised to $130 from $126 at BofA Securities

Investing.com - BofA Securities has raised its price target on MakeMyTrip (NASDAQ:MMYT) to $130.00 from $126.00 while maintaining a Buy rating on the stock. The online travel company, currently valued at $9.55 billion, has demonstrated strong financial health with an InvestingPro Overall Score of "GREAT," supported by impressive gross profit margins of 55.6%.

The online travel company reported first-quarter revenues that were largely in-line with expectations, showing 16% year-over-year growth with air revenues growing 9% and hotels growth at 13.6%. This performance aligns with the company’s strong revenue growth trajectory, which reached 25% over the last twelve months. Despite temporary disruptions in domestic air and holiday packages during the quarter, management sees improving sentiment and recovery trends for leisure destinations.

MakeMyTrip’s EBITDA came in at $46 million, 11% ahead of BofA’s estimate, with margins expanding 1.6 percentage points quarter-over-quarter to 16.3%. This improvement was largely driven by lower other operating expenses despite 16% year-over-year higher marketing costs, which represented 5.1% of gross bookings.

The company reported normalized EBIT of $47.3 million with margins at 1.8% on gross bookings. Air ticketing net revenue margin was 6.8% while hotels and packages margins were 17.7%. Net income reached $26 million, 3% below BofA’s estimate, largely due to higher finance costs and taxes.

BofA Securities slightly increased its EBITDA estimates following the results but cut EPS projections to account for some non-cash adjustments below EBIT. While the stock currently trades above its InvestingPro Fair Value, the firm continues to view MakeMyTrip as a beneficiary of travel momentum and continued market leadership.

In other recent news, MakeMyTrip Limited reported its first quarter fiscal 2026 revenue at $268.8 million, marking a 5.6% increase year-over-year, or 7.8% in constant currency terms. The company highlighted that geopolitical tensions and an airplane crash in India negatively impacted travel demand during May and June. These developments contributed to the company’s financial performance for the quarter. Despite the challenges, the revenue growth indicates some resilience in the company’s operations. The announcement of these results has drawn attention from investors and analysts alike. The company’s recent performance will likely be closely monitored in the coming quarters as it navigates these external challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.