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.
Related: This 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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