Brokerages remain upbeat on Zomato post the food delivery major posted its Q3 earnings, registering a third consecutive quarter of profit. Most brokerages including Jefferies and HSBC have raised their target price on the stock, implying more upside as the company continues to grow faster than expected.
Jefferies raised its target price on Zomato to Rs 205, a 40% increase from current market price and continued to maintain its Buy call on the stock. They further raised their FY24-26 adjusted EBITDA estimates for the company by 4-10%. HSBC raised its target price on Zomato stock to Rs 163 from Rs 150 earlier. HSBC says that they expect a gradual return going forward compared to last twelve months. Morgan Stanley too has an Overweight rating on Zomato with a target price of Ra 150.
Shares of Zomato made an high of Rs 147.50 on the NSE after surging over 4% in trade. Zomato has been a high return multibagger stock with returns of over 165% in the last one year.
Zomato’s Q3 net profit came in at Rs 138 crore against a profit of Rs 36 crore that the company posted in the previous quarter. The company’s revenue surged by 79% to reach ₹3,288 crore, a substantial rise from ₹1,948 crore in the same period last year.
