Zomato’s share price was surging on Friday morning going up over 2.5% to hit an intraday high of ₹130.80.
What Happened: Deepinder Goyal, CEO of Zomato, took to X to refute media reports of the food delivery giant was looking to acquire B2B logistics start-up, Shiprocket.
A Bloomberg report on Thursday said that the company has proposed to acquire Shiprocket, a shipping startup, for about $2 billion. Denying the claim, Goyal wrote, “We deny this statement and would like to caution investors against such incorrect news floating in the market. We remain focused on our existing businesses with no plans for any acquisition at this moment”
See Also: Jefferies Foresees Increased Investment Banking Fees In India Amid Global Shift
Analyst Reactions: Research firm Jefferies in its note on Thursday had said that the deal was unlikely. Jefferies' analysis suggested that if Zomato, which currently owns 5% of Shiprocket, goes ahead with this acquisition, it could lead to a ‘weak’ trading situation for Zomato’s shares due to its seemingly unrelated nature. The firm maintained its “buy” rating for the stock with a target price of ₹168
UBS also maintained its “buy” rating for the stock with a price target of ₹150. The analysts said that the data for November shows slow demand for the third straight month. It highlighted while Zomato’s volumes were down, it did gain market share. The brokerage added that December is usually the strongest month of the quarter.
Price Action: Zomato’s share price was up 1.02% to trade at ₹128.65 as the markets opened on Friday.
Read Next: Amul Clears Air On AI-Generated ‘Sharam’ Cheese Images Being Circulated Online
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.