Morgan Stanley maintains ‘Overweight’ on Zomato, lowers target to Rs 340

Morgan Stanley has reiterated its ‘Overweight’ rating on Zomato while reducing the target price to ₹340 from ₹355. This represents a potential upside of approximately 57.8% from the current market price of ₹215.40.

The brokerage highlighted that slower growth in food delivery, coupled with growth acceleration in Blinkit, is delaying profitability timelines. Additionally, the absence of a clear breakeven timeline remains an overhang on valuation multiples in the near term.

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Morgan Stanley’s scenario analysis suggests that the stock has support in the ₹195-215 range, reflecting the market’s current concerns while leaving room for potential upside.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.