Zomato shares witnessed a remarkable rally of over 4 percent in morning trade, reaching a 52-week high of Rs 159.20 on the National Stock Exchange (NSE). This surge brings the stock closer to its all-time high of Rs 169, achieved on November 16, 2021. The positive movement follows CLSA’s upward revision of the target price on Zomato’s stock to Rs 227.
CLSA expects a 49% upside in Zomato’s share price against its previous close of Rs 152.
CLSA, an international brokerage, maintains a ‘buy’ rating on Zomato, underlining its increasing significance in the profit pool despite being a relatively small company. Analysts at CLSA view Zomato’s recent Q3 results as indicative of a path towards consistent profitability, bolstering investor confidence.
Anticipating significant potential upside for Zomato, CLSA highlights the company’s resilience and expected growth trajectory, even in scenarios where the base case for food delivery might face challenges.
