Zomato shares rally 8% as JPMorgan hikes target price to Rs 340
Zomato rallied 7.6% on the BSE today, reaching an intraday high of Rs 261.50, after JPMorgan raised the stock’s target price to Rs 340 from Rs 208, while maintaining an overweight rating.
JPMorgan stated that Zomato is leading rapid retail consumer transformation through convenience-focused Quick Commerce. The company is expanding its presence across all metros after successfully proving the model in NCR.
This scale should help Zomato drive monetization through channel margins and ad spending. The global brokerage firm expects it to lead the disruption of modern trade and e-commerce.
The global brokerage has raised its forecasts for FY25-27 by 15-41%. Additionally, Zomato has expanded its «Going Out» business by integrating core dining with a new ticketing service.
Recently, One97 Communications-operated Paytm transferred its events and movie ticketing business to Zomato. The transaction was completed earlier in August.
According to the agreement, Zomato was set to acquire the entire stake held by OCL in Orbgen Technologies Private Limited (OTPL) and Wasteland Entertainment Private Limited (WEPL) through a share purchase transaction, making OTPL and WEPL wholly-owned subsidiaries of Zomato.
The online food delivery giant reported a substantial year-on-year growth in its consolidated net profit, reaching Rs 253 crore for the quarter ended June 30, 2024.
For Blinkit, the company’s quick commerce arm, revenues surged 145% year-on-year to Rs 942 crore, though adjusted EBITDA for the same period stood at Rs -3
