Zomato‘s share price continued to make gains for the third straight session going up over 1% to hit a new 52-week high of ₹136.35.

What Happened: The shares of the foodtech giant are upbeat as HSBC maintained its “buy” rating for the stock raising the target price to ₹150 from ₹140. The target indicates an around 11% upside from the stock’s last closing price of ₹134.65.

The brokerage said that following an exceptionally robust performance in 2023, the outlook for business and stock performance in 2024 is expected to be relatively subdued. While the long-term view remains constructive, much of the future trajectory is contingent upon the continued progression of the quick commerce business, the brokerage firm added.

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The analysts expect that the third and fourth quarters are unlikely to spur major earnings upgrades. This projection suggests that the company may face challenges or limited growth drivers in the latter part of the year. In the long term, the firm said that slowing growth in the quick commerce business is a key risk.

The positive stance comes on the heels of another global brokerage maintaining its “buy” rating on the stock. Last week, CLSA maintained its "buy" rating on the stock with a price target of ₹168.

Price Action: Zomato’s share price was trading 1.08% higher at ₹136.10 as the markets opened on Thursday.

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