Following the announcement of a stock buyback program, Roth MKM analyst Darren Aftahi remains bullish on Mondee Holdings (Mondee Holdings Stock Quote, Chart, News, Analysts, Financials Nasdaq:MOND)
On September 21, MOND announced it had been authorized to buy back up to $30-million of its own stock, effective immediately.
“We are excited to launch this $30 million share repurchase program as a clear signal of our dedication to delivering value to our shareholders,” CEO Prasad Gundumogula said. “Our decision reflects our belief in the strength of Mondee’s financial position and our commitment to optimizing our capital structure for the benefit of our investors and shareholders.”
The analyst says despite a falling share price, all seems to be well with MOND.
“We have seen little fundamental data to suggest weakening fundamentals, such as improving travel trends domestically, internationally, and with ancillary services, notably August being the highest trip level since the pandemic began,” the analyst said. “Overall, we believe nothing has changed with the fundamentals to warrant the sell-off and the buyback should help support further declines.”
In a research update to clients September 22, Aftahi maintained his “Buy” rating and one-year price target of $10.00 on Mondee Holdings.
The analyst thinks MOND will post EBITDA of $27.5-million on revenue of $247.7-million in fiscal 2023. He expects those numbers will improve to EBITDA of $62.9-million on a topline of $338.6-million the following year.
What does Mondee Holdings do (via company handout)
Established in 2011, Mondee is a travel technology company and a modern travel marketplace with its headquarters based in Austin, Texas. The company operates 17 offices across the United States and Canada and has core operations in India, Thailand, and Greece. Mondee is driving change in the leisure and corporate travel sectors through its broad array of innovative solutions. Available both as an app and through the web, the company’s platform processes over 50 million daily searches and generates a substantial transactional volume annually. Mondee Marketplace includes access to Abhi, the most powerful and only fully-integrated A.I. travel planning assistant in the market. Its network includes approximately 65,000 leisure travel advisors, freelancers and influencers, 500+ airlines, and over one million hotels and vacation rentals, 30K rental car pickup locations, 50+ cruise lines. The company also offers packaged solutions and ancillary offerings that serve a global customer base.