Zomato hits fresh 52-week high again; can you still join the party?

With that, the stock took its overall upmove to 6.6 per cent in four days, having scaled a series of 52-week highs this week.

The stock of Zomato gained by as much as Rs 3.3, or 2.4 per cent, to Rs 141.6 apiece on BSE, surpassing an existing 52-week high of Rs 139 touched the previous day.

Food delivery firm Zomato’s shares registered a 52-week high on Friday, January 12, adding to a series of milestones the stock has crossed over the past few sessions. The stock of Zomato gained by as much as Rs 3.3, or 2.4 per cent, to Rs 141.6 apiece on BSE, surpassing an existing 52-week high of Rs 139 touched the previous day.

With that, the stock took its overall upmove to 6.6 per cent in four days, having scaled a series of 52-week highs this week.

What’s boosting Zomato shares?

The latest spurt in the new-age stock comes on the back of bullish views by a number of foreign brokerages. Jefferies, Goldman Sachs, Morgan Stanley and HSBC have raised their targets for the stock by Rs 10-30, while maintaining their ‘buy’ ratings on the stock.

TRENDING NOW

Brokerage	Old price targets	New price targets
Jefferies	Rs 165	Rs 165
Goldman Sachs	Rs 130	Rs 130
Morgan Stanley	Rs 140	Rs 150
HSBC	Rs 140	Rs 150
Average price increase	Rs 143.8	Rs 162.5

Analysts are pinning hopes on strong signals from the food delivery company’s financial results for the December quarter, on the back of strong business during the Cricket World Cup, Christmas and the New Year’s Eve.

Zomato has emerged profitable for two back-to-back quarters up to September 2023.

Also check: Why HSBC is bullish on the stock?

Goldman Sachs has raised its FY24-FY30 net income projections for Zomato by up to six per cent, and now forecasts a 30 per cent CAGR for its adjusted revenue during the FY24-FY27 period.

The brokerage expects online grocery and food delivery to be amongst the largest total addressable markets for Zomato within the country’s internet market, registering CAGRs of 29 per cent and 20 per cent over FY24-FY30, respectively.

Meanwhile, Jefferies lifted its target for the new-age stock by Rs 25, or 15.2 per cent, to Rs 190. The brokerage’s target implies a further upside of more than 34 per cent in Zomato shares from the latest 52-week high.

Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.

TAGS: