Swiggy shares opened on a positive note today, trading at ₹441.60, up 2.53%, following UBS’s initiation of coverage with a ‘Buy’ rating and a target price of ₹515. The brokerage’s optimistic outlook on Swiggy stems from its strong positioning in India’s online food delivery (OFD) and quick commerce (Q-com) segments.
UBS highlighted Swiggy’s valuation, currently at a 35% discount compared to Zomato, and its closing gap in scale and margin performance. The quick commerce business, which leverages Swiggy’s logistics expertise, is noted for promising growth potential, catering to rising consumer demands for rapid delivery.
However, UBS cautioned about operational inefficiencies, emphasizing the need for further improvement to fully harness its potential. Swiggy’s dual focus on OFD and Q-com is viewed as a strategic advantage, positioning the company for long-term growth in a highly competitive market.
The stock’s upward momentum reflects positive investor sentiment driven by UBS’s bullish stance.
