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.

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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.

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