Nykaa‘s three-session gaining streak was snapped on Monday as the shares of the omnichannel retailer tanked around 2% at market open.

What Happened: Global analyst firm Macquarie on Monday initiated an ‘underperform’ rating on the stock with a price target of ₹115. That translates to an over 20% downside from the beauty and fashion retailer’s last closing price of ₹149.70.

The firm sees the beauty segment’s margin contracting as growth moves to smaller towns and goes offline. It also highlighted that the company faces threats of competition in both segments. The analysts noted that the tech startup’s fashion segment is yet to prove its success and remains uncertain going forward.

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Since its Q3 results missed estimates, brokerages have remained sceptical about the stock. HDFC Securities downgraded the stock’s rating to ‘sell’ from ‘reduce’ with a target price of ₹125 after the company’s Q3 print.

However, ICICI Securities maintained its ‘add’ rating for the stock and upgraded the price target to ₹165 after the company’s Q3 results—around a 10% upside from the stock’s last closing price.

Price Action: Nykaa shares were down 1.90% to ₹146.85 as the markets opened for business on Monday.

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