Roth MKM analyst Darren Aftahi maintained a Buy rating on Mondee Holdings (MOND – Research Report) today and set a price target of $5.50.
Darren Aftahi has given his Buy rating for Mondee Holdings’ stock due to an assortment of factors. A significant reason was the company’s reported positive estimated organic growth of approximately 18% year-on-year, coupled with an expansion of their take rate to nearly 9.1%. This demonstrates a continued diversification of revenue, which is a positive indication for potential investors. Despite a pause in marketing and a recent divestiture of a non-core asset, expectations for future growth remain promising, with a mid-teens organic growth anticipated in FY24.
The company missed its 3Q numbers by about 17% on the top line and approximately 19% on adjusted EBITDA, largely due to the divestiture of a low-margin B2C air travel company. However, Mondee Holdings still reported growth, on a like-for-like basis, of around 18% or even higher. In addition to this, take rate expanded by roughly 80 basis points quarter on quarter to 9.1%, with further expansion expected as more offerings are included. The acquisition of Purplegrids and the expansion into AI offerings is also expected to reduce costs and assist agents, further strengthening the company’s position. The company’s FY23 guidance was reset to $210M, still leaving a gap of approximately $25M+, which management attributes to uncertainties around earlier plans. Despite some potential negatives, a year-on-year growth of around 20% is still anticipated for FY24, with expanding adjusted EBITDA margins.
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Mondee Holdings (MOND) Company Description:
ITHAX Acquisition Corp is a blank check company.
Read More on MOND:
- Mondee Q3 2023 Results: Robust Growth with Record Profitability and Cash Flow Generation
- Mondee to Report Third Quarter 2023 Financial Results on November 14, 2023
- Mondee expands share repurchase program to up to $40M
- 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
