Darren Aftahi, an analyst from Roth MKM, reiterated the Buy rating on Mondee Holdings (MOND – Research Report). The associated price target remains the same with $4.10.
Darren Aftahi has given his Buy rating due to a combination of factors including Mondee Holdings’ impressive first quarter performance and the strategic shift in their service mix. The company’s transactions saw a remarkable year-over-year increase of approximately 62%, with significant growth in short-haul flights and hotel bookings. This growth indicates a positive trend despite a reduction in the take rate, suggesting a shift towards a more profitable transaction mix. The increase in non-air travel revenue, which doubled year-over-year to represent 51% of the total revenue, particularly in packages with higher take rates, signals a strong potential for enhanced profitability.
Furthermore, the company’s upward revenue guidance revision, following the first quarter outperformance, reinforces confidence in their growth trajectory. Although the take rate has seen a slight decline due to the changing dynamics within short-haul flights, the overall financial indicators such as cash flow operations and a healthy cash reserve position with extended debt maturity, without penalty, underscore a stable financial structure. The maintained EBITDA forecast, coupled with these positive operational and financial developments, supports the Buy rating and suggests a promising outlook for Mondee Holdings.
Aftahi covers the Technology sector, focusing on stocks such as Shopify, Alarm, and Phunware. According to TipRanks, Aftahi has an average return of 5.1% and a 32.40% success rate on recommended stocks.
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Mondee Holdings (MOND) Company Description:
ITHAX Acquisition Corp is a blank check company.
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