Roth MKM analyst Darren Aftahi maintained a Buy rating on Mondee Holdings (MOND – Research Report) today and set a price target of $10.00.
Darren Aftahi has given Mondee Holdings a Buy rating due to a combination of factors. Despite the stock’s performance not reflecting the strong trends in global travel, the recent rebound in share price coupled with the expansion of the buyback program from $30M to $40M suggests a potential uptick in the company’s financial health. While the numerous acquisitions have raised concerns about the transparency of organic growth, the overall transaction growth, expected to be around 30% in the second half, justifies the optimism. Further, diversified transaction types and advancements in ancillary services are anticipated to improve take rates.
Investing further in the report, Aftahi notes that the increased operational expenditure for the rollout of the AI travel platform is likely to be balanced by positive news on AI adoption and productivity, indicating its significance beyond being just a buzzword. Despite the heavy debt burden, there seems to be a disconnect between the fundamentals and the share price, which leaves room for potential growth. The company’s decision to increase its preferred equity optionality by up to $15M also instills confidence. Overall, the company’s strong travel trends and the expected growth in transactions in the second half of the year, along with the anticipated improvement in take rates, are key factors behind Aftahi’s Buy rating for Mondee Holdings.
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Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MOND in relation to earlier this year.
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Mondee Holdings (MOND) Company Description:
ITHAX Acquisition Corp is a blank check company.
Read More on MOND:
- Mondee Enhances Capital Structure with Additional Preferred Equity, Expands Share Repurchase Program to up to $40 Million
- Roth MKM sees little data for Mondee to suggest weakening fundamentals
- Mondee Announces Inaugural Share Repurchase Program of Up to $30 Million
- Mondee announces inaugural $30M buyback program
- Mondee Appoints Travel Luminary Jeff Clarke to Board of Directors
