Yatra Online's Indian Subsidiary IPO To Push US Shares Higher, Says Analyst

  • H.C. Wainwright analyst Scott Buck reiterated a Buy rating on the shares of Yatra Online Inc YTRA with a price target of $4.00.
  • While the recovery from the COVID-19 pandemic has created strong tailwinds for Yatra operations, and shares, the analyst has some concerns macro headwinds may begin to challenge the recovery in 2023.
  • Buck expects the company to provide new details on the company’s earnings conference call next surrounding demand trends in the Indian travel market.
  • The update, he says, should provide greater visibility to the investor community on how to think about demand in 2023 and beyond.
  • The analyst also anticipates the company to provide an update on its local IPO, which gained regulatory approval last week.
  • Buck believes the completion of a local IPO could provide capital to accelerate growth through acquisition and be a driver of the U.S.-traded shares based on a potential valuation dislocation.
  • Should the company be successful in raising upward of $100.0 million, likely at a meaningful premium to U.S. market valuations, he believes a series of acquisitions could meaningfully accelerate growth in the business.
  • He said local valuations could potentially drive U.S. shares higher given the dislocation in valuations and thus believe the completion of local IPO will serve as a catalyst for Yatra’s shares.
  • While Buck has some concerns regarding potential contagion from inflationary pressures in the U.S. and the ongoing war in Eastern Europe, to-date travel trends in India remain favorable.
  • Yatra Online is scheduled to report 2Q23 operating results before the market opens on November 29, 2022.
  • RelatedThis Analyst Sees 'Multiple Catalysts' To Drive Revenue Growth For Yatra
  • Price Action: YTRA shares are trading lower by 0.70% at $2.85 on the last check Tuesday.
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