What happened Shares of MakeMyTrip (NASDAQ: MMYT) fell 13% yesterday following a double downgrade from Bank of America Merrill Lynch, which cut its rating on the Indian online travel company by two notches. The stock is recovering somewhat today, gaining 6% as of 11:30 a.m. EDT. So what Analyst Sachin Salgaonkar cut his rating on MakeMyTrip from buy to underperform, while dropping his price target from $32 to $25. Salgaonkar believes that the company's fundamentals are deteriorating and shares currently have a poor risk/reward profile. Image source: Getty Images. Indian airline Jet Airways recently announced that it was canceling all flights after failing to obtain emergency funding from banks, a development that Salgaonkar argues will hurt MakeMyTrip's traffic volumes due to rising ticket prices. Now what Salgaonkar had previously estimated that MakeMyTrip could reach EBITDA breakeven in approximately four quarters, but now models for that to occur in seven to eight quarters. The analyst had asked management about a timeline for EBITDA breakeven on the January earnings call. "In terms of the acceleration in EBITDA as and when we get to the breakeven levels, as I said, this is probably something we're talking about at least about a year down the line and I'm sure we'll kind of continue giving more and more color as we keep getting there," CFO Mohit Kabra responded at the time. "So hopefully in the next few quarters, we should be able to share more color on how do we kind of take it further from there." MakeMyTrip has not yet scheduled its fiscal fourth-quarter earnings release. 10 stocks we like better than MakeMyTripWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and MakeMyTrip wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of March 1, 2019Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends MakeMyTrip. The Motley Fool has a disclosure policy.Source