Zomato‘s share price surged over 7% on Thursday after global brokerage JP Morgan kept a bullish call and raised the target price for the stock.

What The Brokerage Said: JP Morgan reiterated its "overweight" call and raised the target price to ₹340 from ₹208, indicating a 40% upside from the previous day’s close. The company is spearheading a rapid retail consumer transformation through the quick commerce business, the brokerage said. 

The company has ambitious rollout plans and its model is going deeper across all metro cities after getting success in the Delhi NCR region. The company's scale should help it drive monetisation from its channel margin and ad spending, the research firm added. 

The incremental store economics should turn more positive on EBITDA, it noted. According to the brokerage, Blinkit will have a way to scale faster than its peers and current target. 

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JP Morgan's vote of confidence is the latest in line by brokerages for Zomato. CLSA recently gave an "overweight" call on Zomato, with a target price of ₹353. The brokerage expects Blinkit to become EBITDA positive and profitability by FY25. It also sees Blinkit contribute 37% to Zomato's earnings per share in FY26.

Kotak also said Zomato is expected to remain ahead in the quick commerce race with Blinkit as competition intensified from Flipkart, Swiggy and possibly Amazon. 

Price Action: Shares of Zomato rose 7.72% to intraday high of ₹261.6 on Thursday morning. 

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