Zomato pops after brokerages raise targets; can double money from current price

Around 10 am today, Zomato shares were trading at Rs 70.10 on the NSE and were up by Rs 6.15 or 9.62 per cent per share. Source:

Zomato shares shot up 12 per cent intraday after top brokerages revised their targets upwards on this food delivery platform. JP Morgan has doubled the target to Rs 120, estimating a 90 per cent upside while Jefferies has put the price target at Rs 100. Both the brokerages maintain a ‘Buy’ on this stock with the former remaining ‘Overweight’.

Around 10 am today, Zomato shares were trading at Rs 70.10 on the NSE and were up by Rs 6.15 or 9.62 per cent per share.

The stock was recommended at a price of Rs 64.

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The optimism on Zomato can be attributed to its good September quarter results where the company has not only reduced its losses but also reported a 62 per cent YOY jump in its revenues. The sales were reported at Rs 1661 crore for the reporting quarter versus Rs 1024 crore, the company reported in the year ago period.

The losses were down nearly 40 per cent at Rs 251 crore for the July-September quarter versus loss of Rs 430 crore in Q2FY22.

Some other brokerages which hold a positive view in this counter include Morgan Stanley () and Citi. While the former remains ‘Overweight’ and has put the price target at Rs 80, the latter has a higher target of Rs 85 on this scrip.

Citi estimated an overall 30 per cent increase in its Gross Order Value (GOV) in FY23E. The Blinkit losses have declined 20 per cent QoQ, the brokerage noted.

The company expects adjusted EBITDA loss (Ex-Quick commerce) to come down further hoping to get breakeven in next 2 to 4 quarter.

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Meanwhile, Macquarie has taken a contrarian view on this stock while maintaining a ‘Neutral’ stance and has put a target of Rs 60.

The stock was trading with very strong volumes today with over 16 crore shares on the block around the time of filing of the story.

Source: NSE

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

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