Citi Lowers MakeMyTrip's Price Target to $120, Maintains Buy Rating

Citi has reduced its price target for MakeMyTrip (MMYT) from $125 to $120 while maintaining a Buy rating. The adjustment reflects a decline in demand for the company's domestic air and package segments, but a robust performance in international markets and new transportation ventures. Analysts forecast an average target price of $119.79, with an upside of 19.31% from the current price.

Citi has revised its price target for MakeMyTrip (MMYT) from $125 to $120, while maintaining a Buy rating. The adjustment reflects a decline in demand for the company's domestic air and package segments, but a robust performance in international markets and new transportation ventures. Analysts forecast an average target price of $119.79, with an upside of 19.31% from the current price.

Despite macroeconomic challenges, including the May Belgaon incident and the June crash, MakeMyTrip reported a 21% adjusted operating profit growth in Q1. The company's domestic air market share marginally increased from 30.6% to 30.8%, while its international segment outpaced peers with 27% YOY growth in air ticketing revenue and 45% YOY growth in hotels revenue, lifting its share of total revenue to 27% [1].

However, domestic leisure demand was notably weak in May and June, causing holiday package bookings to remain flat and dragging on standalone hotel and flight bookings. The company raised approximately $3.1 billion through primary offerings and used the net proceeds to repurchase and cancel 34.3 million Class B shares, reducing total outstanding shares by over 14% [1].

The company's ongoing investments in GenAI-powered search, expanded ancillary travel services, and new bus and accommodation supply aim to reinforce long-term growth in India’s travel sector. Despite the exceptional macro headwinds during the reported quarter, MakeMyTrip delivered strong top-line growth and managed to grow market share in the domestic air segment, marginally from 30.6% to 30.8% [1].

India's travel sector is poised for strong long-term growth driven by rising disposable income, infrastructure upgrades, and a fundamental shift in consumer behavior to spend more on travel. International outbound travel from India presents a significant growth opportunity, with more Indians eager to explore global destinations [1].

References:
[1] https://www.marketbeat.com/earnings/reports/2025-7-22-makemytrip-limited-stock/