Is It Worth Investing in MakeMyTrip (MMYT) Based on Wall Street's Bullish Views?

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on MakeMyTrip (MMYT), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][5][10]. Group 1: Brokerage Recommendations for MakeMyTrip - MakeMyTrip has an average brokerage recommendation (ABR) of 1.36, indicating a consensus between Strong Buy and Buy, with 71.4% of recommendations being Strong Buy and 14.3% being Buy [2][5]. - The ABR suggests a buying opportunity for MakeMyTrip, but relying solely on this information may not be advisable due to the historical ineffectiveness of brokerage recommendations in guiding investors [5][10]. Group 2: Analyst Bias and Zacks Rank - Brokerage analysts tend to exhibit a strong positive bias in their ratings, often issuing five Strong Buy recommendations for every Strong Sell, which can mislead investors [6][10]. - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of a stock's near-term price performance compared to the ABR [8][11]. Group 3: Current Earnings Estimates for MakeMyTrip - The Zacks Consensus Estimate for MakeMyTrip remains unchanged at $1.59 for the current year, suggesting stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, MakeMyTrip currently holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].