Citi Reiterates Buy Rating on MakeMyTrip (MMYT)

Citi analyst Vijit Jain reiterated a Buy rating and $125.00 price target on MakeMyTrip (NASDAQ: MMYT).

The analyst comments "MMYT has entered a share repurchase agreement with TCOM wherein MMYT will repurchase part of TCOM’s Class B shareholding, likely bringing TCOM shareholding to <20% from >45% currently. MMYT will issue new equity (US$1.4bn+ US$0.2bn) & convertible debt (US$1.25bn+ US$0.2bn), and can use up to US$200mn of cash from its own reserves, all cumulatively amounting to cUS$3bn (i.e. including the options to up size and utilize cash reserves) to fund the repurchase. In our view, this transaction suggests a step forward on a potential India IPO. Management has previously said that an India IPO remains an option but isn’t on the cards immediately. Given the entire fund-raise (both equity & debt) is aimed at repurchasing Class B shares from TCOM, there is no dilution in MMYT as a result of this transaction. Maintain Buy."

For an analyst ratings summary and ratings history on MakeMyTrip click here. For more ratings news on MakeMyTrip click here.

Shares of MakeMyTrip closed at $100.88 yesterday.

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