Nykaa’s share price continued to slump for the third straight session on Thursday going down over 1% at open.

What Happened: Morgan Stanley in its latest note on the stock maintained the ‘overweight’ rating for the stock cutting the price target to ₹173 from ₹175. The research firm said that its survey reveals that a structural increase in beauty spending is visible in India.

The firm said its medium-term view of Nykaa’s beauty business drives its positive outlook for the omnichannel retailer. Regarding the fashion business, the firm said that the recent sluggishness triggered an earnings cut for FY25-26.

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Despite this Nykaa’s share price continued to trail in the red for the third straight session. The slump comes after the company was on a strong run at the bourses. Prior to these three days, the stock had closed higher on eight occasions out of the previous nine. In the past month, the stock has climbed up by around 10%.

Price Action: Nykaa’s share price was down 1.20% to trade at ₹143.85 at market open on Thursday.

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