Zomato’s stock saw a notable rise of 6% this week following UBS’s reaffirmation of its “Buy” rating with a target price of ₹320.
After adjusting for the number of days, UBS said that industry volumes increased by 2.5% month over month (MoM) in August 2024, highlighting the sector’s solid trend. Zomato’s order growth of 1.8% MoM behind Swiggy’s 3.1%, but its total August 2024 volumes were 25% higher than in December 2023, outpacing Swiggy’s 18% growth over the same period.
Furthermore, UBS estimated a 7% QoQ increase in gross merchandise value (GMV) for Zomato in Q2 FY25, adding to the stock’s optimistic outlook.
Stock Performance on Friday
– Open: ₹285.40
– High: ₹286.45
– Low: ₹271.10
