Zomato Shares Hit New 52-Week High As Brokerage Raises Target Price

Zomato’s share price made a strong comeback on Thursday morning after ending Wednesday in the red. The shares of the food delivery giant surged up to a new 52-week high of ₹159.20.

What Happened: The stock is upbeat today as CLSA maintained its “buy” rating for the stock and hiked the target price to ₹227 from ₹181. The revised target indicates an around 50% upside from the stock’s last closing price of ₹152.25.

The global brokerage firm said that the company’s Q3 performance showed a clear to stable profitability. The analysts added that they see a significant upside in the stock. Even taking the conservative Blinkit order growth scenario, the brokerage firm sees around a 12% upside.

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Zomato reported a net profit of ₹138 crore for the December quarter. Revenue also surged by 69% year-on-year to ₹3,288 crore. Zomato credited its strong performance to events like the Cricket World Cup and the festive season.

After the results came out, several other brokerages also retained its positive stance on the stock. Jefferies and Kotak Securities both have a “buy” rating on the stock with price targets of ₹205 and ₹190.

Price Action: Zomato’s share price was up 2.30% to trade at ₹155.75 as the markets opened on Thursday.

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