Zomato’s share price was wobbly on Tuesday morning even as the stock HSBC maintained its positive stance on the foodtech company.
What Happened: The stock is upbeat today as HSBC maintained its “buy” rating for the stock with a price target of ₹140. The price indicates an around 19% upside from the stock’s last closing price of ₹117.40.
The research firm, however, said that the company will have to maintain a 15% compound annual growth rate (CAGR) for food delivery and a 25% CAGR in quick commerce over the next 4-5 years to expand its margins. The firm pointed out that demand downside is a key risk for both business verticals.
Just last week, another major global research firm Citi maintained its “buy” rating for the stock with a price target of ₹145. The call came after Ant Group-owned Alipay Singapore Holdings parted ways with Zomato.
The food delivery giant has made a major recovery this year. On a year-to-date basis the stock has surged up over 90%.
Price Action: Zomato’s share price was down 0.34% on Tuesday morning to trade at ₹117.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.