H.C. Wainwright analyst Scott Buck reiterated a Buy rating on Yatra Online (YTRA – Research Report) today and set a price target of $4.00.
Scott Buck’s Buy rating for Yatra Online is grounded on a confluence of optimistic indicators and strategic company movements. The anticipation of robust F3Q24 earnings, fueled by seasonal travel demand and easing pricing pressures, sets the stage for potential upside. Yatra’s significant market share gains and customer acquisition efforts further solidify its long-term prospects within the buoyant Indian travel industry. Moreover, post-IPO, the company’s possible mergers and acquisitions could amplify growth, enhancing revenue projections for FY24 and FY25. Buck underscores the substantial operating leverage due to higher revenue paired with controlled expense growth, suggesting a compelling case for investors to build their positions in anticipation of improved operational outcomes and forthcoming corporate developments.
An additional factor bolstering Buck’s recommendation is the severe price discrepancy between Yatra’s U.S. listed shares and those available locally, with U.S. shares trading at a substantial discount. This presents an attractive entry point for investors. The repurchase authorization and potential alignment of U.S. and Indian listed shares could act as catalysts, narrowing the valuation gap. Concurrently, enduring secular growth within India’s travel sector, underscored by record-breaking air traffic and significant investments in aviation infrastructure, positions Yatra to benefit from the industry’s upward trajectory. Buck envisions Yatra as a long-term beneficiary of these sector-wide enhancements, given its strategic gains during the pandemic and the projected increase in operational airports, which would further cement the company’s standing in the market.
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Yatra Online (YTRA) Company Description:
Yatra Online, Inc. engages in the business of selling travel products and solutions. It operates through the following segments: Air Ticketing; Hotels and Packages; and Others. The Air Ticketing segment offers flight ticket booking services to its customers. The Hotels and Packages segment provides hotel room booking and tour packages. The Others segment engages in providing third party advertising on website, rail & bus ticketing, and cab booking. The company was founded by Dhruv Shringi, Manish Amin, and Sabina Chopra in August 2006 and is headquartered in Gurgaon, India.
