Zomato‘s share price surged nearly 2% to hit a new all-time high of ₹221.31.

What Happened: The surge today comes as global brokerage firm UBS maintained its bullish stance on the food delivery giant.

UBS maintained its “buy” rating for the stock raising the target price to ₹260 from ₹250. The target indicates an upside of around 20% from the stock’s last closing price of ₹217.14.

Industry volumes grew around 1% month-on-month in June when adjusted for the number of days. As per the analysts, the competition between Zomato and Swiggy, a push-and-pull dynamic was observed in Q1FY25. UBS estimates Zomato’s gross merchandise value quarter-on-quarter growth for Q1FY25 to be around 9%.

Last month, the tech major acknowledged that it was in discussions with Paytm for a deal but no binding decision had been taken so far. The acquisition discussions aim to bolster Zomato's "going-out" business, aligning with its strategic focus on four key areas.

Price Action: Zomato’s share price was up 0.90% to trade at ₹219.10 in early trade on Friday.

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