Zomato shares may go up to Rs.250, says UBS

(20 second reading) Brokerage firm UBS expects shares of food delivery giant Zomato Ltd. to rise up to as high as Rs.250 per share over the next 12 months. However, this isn’t the highest target for the stock on the street. Brokerages like ICICI Securities (Rs.300) and JM Financial (Rs.260) have targets higher than UBS for Zomato’s shares.
Out of the 28 analysts that track Zomato, 24 of them maintain a “buy” recommendation on the stock, while four of them have a “sell” rating. UBS believes that Zomato’s quick commerce growth and margin potential are under appreciated by the street.
The brokerage expects Zomato’s Gross Merchandise Value (GMV) to reach $10.2 billion by financial year 2029 or over the next five years,