Brokers Suggest Investing in MakeMyTrip (MMYT): Read This Before Placing a Bet

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on MakeMyTrip (MMYT), and emphasizes the importance of using these recommendations in conjunction with other research tools like the Zacks Rank [1][4]. Group 1: Brokerage Recommendations - 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]. - The article highlights that brokerage analysts tend to exhibit a strong positive bias in their ratings, often issuing five "Strong Buy" recommendations for every "Strong Sell" [5][9]. - The ABR may not be a reliable standalone indicator for investment decisions, as studies show limited success in guiding investors towards stocks with the best price increase potential [4][9]. Group 2: Zacks Rank vs. ABR - The Zacks Rank is presented as a more reliable indicator of a stock's near-term price performance, based on earnings estimate revisions, and is classified into five groups from Strong Buy to Strong Sell [7][10]. - Unlike the ABR, which is based solely on brokerage recommendations and may not be up-to-date, the Zacks Rank reflects timely changes in earnings estimates, making it a more effective tool for predicting future stock prices [8][11]. - MakeMyTrip currently holds a Zacks Rank of 3 (Hold), indicating that analysts' views on the company's earnings prospects have remained unchanged, suggesting the stock may perform in line with the broader market [12][13].