Recently, shares of MakeMyTrip Ltd. (Symbol: MMYT) have risen above the average analyst 12-month target price of $106.71, trading at $106.80 per share. When a stock hits its target price, analysts face two choices: either downgrade on valuation or raise their target. Their decision often hinges on the fundamental developments that may have driven the stock price higher; if the company’s prospects are improving, it may be time to adjust the target upwards.
In total, there are 7 different analyst targets within the Zacks coverage universe contributing to the average for MakeMyTrip Ltd. However, this average is simply a mathematical mean. Some analysts have lower targets, with one expecting a price of $74.00, while others set their sights as high as $130.00. The standard deviation among estimates stands at $20.122.
The rationale for focusing on the average price target is the “wisdom of crowds” approach, which aggregates the opinions of multiple analysts rather than relying on a single expert’s view. As MMYT trades above the average target of $106.71, investors are prompted to evaluate: is this just a milestone on the way to even higher prices, or has the stock’s valuation become too inflated, signaling it might be time to take profits? Below is an overview of the current analyst ratings for MakeMyTrip Ltd.:
| Recent MMYT Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 5 | 5 | 5 | 5 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 1 | 1 | 1 | 1 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.36 | 1.36 | 1.36 | 1.36 |
The average rating indicated in the table ranks from 1 to 5, where 1 stands for Strong Buy and 5 signifies Strong Sell. This analysis utilized data from Zacks Investment Research via Quandl.com. Access the latest Zacks research report on MMYT for free.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
