Shares of Zomato rose 4% on Thursday to reach a new all-time high of Rs 283.60 after global brokerage firm UBS maintained a buy rating on the stock with a target price of Rs 320, driven by optimism about the company's growth.UBS in its note stated that the industry volumes are growing at about 2.5% on a month-on-month (MoM) basis in Aug '24, which has been adjusted for the number of days.Zomato vs Swiggy is a push-and-pull scenario that is continuing into Q2FY25, said the global brokerage firm as it estimates Zomato's Q2FY25 GMV growth at 7% quarter-on-quarter (QoQ).Shares of Zomato rose for the sixth straight session. In these last six days, the shares have increased by 15.6%.The optimism started building when Zomato entered into a deal with Paytm to acquire its events and movies ticketing business which was recently completed and following this, global brokerage firms such as Jefferies and JP Morgan have also turned positive on the stock.Also read: Last date to buy for eligibility! KIMS 1:5 stock split record date tomorrowEarlier in the month, JP Morgan had hiked the stock’s target price to Rs 240 from an earlier Rs 208 while maintaining an overweight rating on the same stating that Zomato is spearheading rapid retail consumer transformation via convenience and selection-focused Quick Commerce. The company is going deeper across all Metros having proven the model in NCR.The global brokerage firm has raised its forecasts over FY25-27 by 15-41%. Additionally, the company has also built a bigger "Going out" business combining core dining with the new ticketing business.Meanwhile, another global brokerage firm Jefferies had given a base case target of Rs 335 (+31%) for Zomato believing that Zomato has taken some interesting initiatives in food delivery that will strengthen the franchise and hence, expect a 20% CAGR in delivery revenue over FY 24-27.Also Read: Shree Tirupati Balajee shares list at 12% premium over IPO price According to the agreement with Paytm, Zomato was to acquire the entire stake owned by OCL in OTPL and WEPL through a share purchase transaction, resulting in Orbgen Technologies Private Limited (OTPL) and Wasteland Entertainment Private Limited (WEPL) becoming wholly-owned subsidiaries of the food delivery player.The online food delivery giant reported multifold year-on-year growth in its consolidated net profit to Rs 253 crore for the quarter ended June 30, 2024.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
- News Source Indiatimes (Click to view full news): CLICK HERE
0 Comments:
Leave a Reply