MakeMyTrip's Higher Ad Spend Weighs on Margin, Morgan Stanley Says

MT Newswires Live01-23

MakeMyTrip's (MMYT) fiscal Q3 results showed strong underlying demand across core travel segments but rising marketing spend weighed on margins, Morgan Stanley said in a note Wednesday.

The report said the company has done "well" in managing top-line growth in a tough macro environment, with volumes beating expectations across air, hotels and bus segments.

The note also pointed to rising advertising and sales promotion spending, driving cuts to adjusted EBIT estimates.

"We also slow down the pace of margin improvement assumptions for F27/F28, driving cuts of 1% and 4.5%, respectively," the report said.

Morgan Stanley cut its price target to $106 from $113 while keeping its overweight rating on the stock.

Price: 66.75, Change: +1.21, Percent Change: +1.84

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