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On Wednesday, H.C. Wainwright analyst Scott Buck revised the price target on Yatra Online (NASDAQ:YTRA) to $3.00 from the previous $4.00, while maintaining a Buy rating on the company’s stock. The adjustment followed Yatra Online’s financial results for the third fiscal quarter of 2025, which were disclosed before the market opened on February 11. Yatra reported revenue of $27.5 million, falling short of H.C. Wainwright’s $29.8 million estimate. This shortfall was attributed to persistent challenges in the business-to-consumer (B2C) travel sector, with air ticketing margins reaching their lowest point since the 2020-2021 period. According to InvestingPro data, the stock has experienced significant pressure, trading near its 52-week low of $1.03, with a -32.9% return over the past six months.
Despite the lower-than-expected revenue, Yatra Online experienced robust growth in its Meetings, Incentives, Conferences, and Exhibitions (MICE) business. This division saw an impressive 65.8% year-over-year increase in adjusted hotel and packages margin. The MICE services market in India, which is estimated to be worth up to $10 billion, remains largely fragmented, presenting a significant opportunity for Yatra to capture additional market share. InvestingPro analysis shows the company’s overall revenue growth at 33.74% in the last twelve months, with analysts forecasting continued sales growth this year. Subscribers can access 15+ additional ProTips and detailed growth metrics on the platform.
In addition to the MICE segment’s strong performance, Yatra Online has also shown continued success in the corporate travel space. The company reported adding a record 50 new corporate customers during the quarter. Despite the near-term pressure on B2C margins, analysts believe that Yatra’s diversified opportunities will drive revenue growth in the fiscal years 2025 and 2026.
Furthermore, Yatra Online is actively engaging with regulators to potentially simplify its legal and corporate structure. If successful, this could act as a significant catalyst for the company’s U.S.-listed shares, which are currently trading at a substantial discount compared to locally listed shares. The company’s ongoing efforts to address these structural issues could enhance investor sentiment in the future.
In summary, H.C. Wainwright’s revised price target reflects the current challenges in the B2C market, yet the firm maintains a positive outlook on Yatra Online’s stock due to the company’s growth prospects and potential structural improvements. Based on InvestingPro’s Fair Value analysis, the stock appears to be undervalued at current levels. For comprehensive insights into Yatra Online’s valuation and growth potential, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Yatra Online Inc . reported robust financial performance for the third quarter of fiscal year 2025. The company’s revenue surged by a notable 113% year-over-year, although it fell short of market forecasts. Key financial highlights also include a 25% year-over-year growth in gross margin and a 173% increase in adjusted EBITDA. Despite strong growth, the company faced challenges with a slight decline in gross bookings.
In terms of future plans, Yatra is focusing on expanding its high-margin businesses, including its hotel and MICE (Meetings, Incentives, Conferences, and Exhibitions) segments. The company is also enhancing its corporate travel solutions and maintaining cost discipline. These recent developments are all part of the company’s ongoing efforts to optimize operations and drive growth.
In response to the earnings report, Yatra’s stock remained stable, indicating a cautious optimism from investors. CEO Dhruv Sringi highlighted the company’s strategic initiatives, emphasizing the potential of the organized MICE market and the company’s leadership in the corporate travel sector. Despite the revenue miss, the company’s strong year-over-year growth may alleviate some investor concerns.
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