Zomato stock sees upward momentum as major brokerages revise targets

Zomato's committee of directors approved a connection connected Tuesday to rise Rs 8,500 crore done the issuance of equity shares via the qualified organization placement (QIP) route. The announcement came alongside the company’s Q2FY25 earnings, wherever Zomato reported a 389% surge successful consolidated nett net to Rs 176 crore for the 4th ending September 2024, compared to Rs 36 crore a twelvemonth ago.

Despite the beardown results, Zomato shares closed astatine Rs 256.55 connected the NSE, down 3.44%.

Zomato shares, presently priced astatine Rs 256, person gained traction among starring brokerages, galore of which person raised their terms targets, reflecting increasing assurance successful the company’s maturation potential. CLSA has reiterated its "Outperform" rating, boosting its people to Rs 370 from Rs 353, citing Zomato’s quality to grow its marketplace beingness successful the highly competitory nutrient transportation industry.

Nomura has likewise revised its people from Rs 280 to Rs 320 portion maintaining a "Buy" recommendation, highlighting optimism implicit the company’s semipermanent prospects. Citi echoed this sentiment, reaffirming its "Buy" stance and somewhat raising its people to Rs 310 from Rs 300. Goldman Sachs followed suit, revising its people from Rs 280 to Rs 315, supported by expectations of continued maturation successful the company’s idiosyncratic basal and bid volumes.

Jefferies has besides maintained a "Buy" rating, mounting its people astatine Rs 335, portion JP Morgan is adjacent much bullish, expanding its terms people to Rs 340 and maintaining an "Overweight" rating. HSBC, too, raised its people to Rs 330 portion upholding a "Buy" recommendation.

However, determination are immoderate differing opinions. Morgan Stanley maintained an "Overweight" standing with a much blimpish terms people of Rs 278. Macquarie stood retired with a contrarian view, holding its "Underperform" standing and a importantly little people of Rs 100, reflecting a much cautious outlook connected Zomato's near-term performance.

The wide scope of upward revisions signals increasing marketplace assurance successful Zomato’s quality to navigate challenges successful the nutrient transportation abstraction portion continuing its upward trajectory.