Bank of America (BofA) has retained its Buy rating on Zomato, with a target price of Rs 325, implying a 17% upside. BofA mentioned that Zomato is looking to raise equity, with media reports suggesting a raise of $450-500 million.
BofA sees the quick commerce industry facing increased competition in the next 6-12 months, which could challenge Zomato’s growth trajectory. However, Zomato’s focus on achieving 50%+ domestic ownership and scaling up its verticals is seen as a key strength. The brokerage believes that Zomato’s ability to adapt and expand in the face of competition positions it well for long-term growth.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Please consult a financial advisor before making any investment decisions.
