Macquarie Upgrades MakeMyTrip After Share Buyback Cuts Trip.com Stake

MakeMyTrip Limited (NASDAQ:MMYT) ranks among the best cyclical stocks to buy now. On June 24, Macquarie upgraded the shares of MakeMyTrip Limited (NASDAQ:MMYT) from Neutral to Outperform, citing enhanced risk-reward dynamics in the wake of a recent share-price fall.

Macquarie Upgrades MakeMyTrip After Share Buyback Cuts Trip.com Stake

The upgrade followed MakeMyTrip’s announcement of a $3.1 billion capital increase to lower Trip.com’s stake. With a conversion price of $121.50, the capital consists of $1.43 billion in zero-coupon convertible notes due in 2030 and a primary share issuance of 18.4 million shares at $90 each.

By repurchasing the majority of Trip.com’s Class B shares, the company will reduce its ownership from 45.3% to roughly 17% and reduce its representation on the board from five to two seats. Macquarie analysts predict that the repurchase will result in a 12% decrease in MakeMyTrip’s basic share count, which will be compensated for by newly issued shares.

Online travel company MakeMyTrip Limited (NASDAQ:MMYT) offers a range of services and products, such as booking airline and bus tickets, vacation packages, hotel reservations, foreign exchange, and visa processing.

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