The shares of Zomato surged around 6 per cent to Rs 131.8 per share (day’s high) on the BSE intraday trade today, after mostly trading weak in the last week as the anchor investors lock-in period ends. Today’s surge is mainly led by Goldman Sachs and Morgan Stanley being bullish on the stock.

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In this regard, Goldman Sachs says, the company is well-positioned to grow its share of $155 billion food services TAM by FY30. It forecasts GOV/Revenue to grow 11x/13x to reach $14 billion/$ 4.5 billion by FY30.

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The brokerage maintained a Buy stance with a target of Rs 180 per share. It says the expertise in food delivery will help the company enter and expand into adjacent categories. And, Goldman Sachs also expects the company to be EBITDA profitable by FY24.

While Morgan Stanley initiates coverage on Zomato shares with an Equal-weight call and a target price of Rs 140 per share. The brokerage says the company has strong business moats with the potential to add new adjacencies and view risk-reward as balanced at current stock price.

In the last week, the domestic brokerage firm ICICI Securities had said in a note that the food delivery platform has huge potential and may post around 70 per cent upside with a target of Rs 220 a share.

Goldman Sachs, becomes the first global brokerage firm to have Buy stance along with ICICI Direct, which raised expectations from loss making company. 

On the contrary, HSBC and Dolat Capital has raised concerned with downside estimate of around 19 and 45 per cent in the stock, days after Zomato’s market debut last month. 

The shares of startup got listed on July 23, 2021, near 60 per cent higher to Rs 121 per share on the BSE and NSE, above Zee Business Managing Editor Anil Singhvi's expectations.