Zomato Shares of Zomato Ltd., the popular food delivery aggregator, experienced a significant boost of 19% to reach ₹278.7 after analysts revised their price targets upwards following the company’s June quarter results. This rise reflects growing confidence in Zomato’s future prospects and robust performance across its operations.
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Zomato Shares Analysts’ Upgraded Targets and Recommendations
Brokerage firm CLSA has been particularly bullish on Zomato, maintaining its “buy” recommendation and raising its price target to ₹350 from ₹248. This revised target is the highest on the street and comes after Zomato reported its results for the June quarter. CLSA also increased its earnings estimates for Zomato by 6% to 36% for the financial years 2025 to 2027. The firm highlighted improved performance from Blinkit, despite an increase in dark stores, as a key factor behind the optimistic outlook.
Motilal Oswal has similarly raised its price target for Zomato to ₹300. The brokerage noted that Blinkit represents a significant opportunity in the retail, grocery, and e-commerce sectors. Motilal Oswal anticipates margins of 4% and 8.7% for Zomato in FY 2025 and FY 2026, respectively, although it acknowledges that valuing Blinkit remains challenging.
Equirus and ICICI Securities also set price targets of ₹300 or higher for Zomato, reflecting confidence in the company’s continued growth and performance.
Other Brokerage Updates
Morgan Stanley retained its “overweight” rating on Zomato, revising its price target from ₹235 to ₹278. The firm believes Zomato’s goal of achieving over 20% growth in food delivery and its plans to open 2,000 stores by the end of 2026 in quick commerce, alongside a new app for the “going out” segment, indicate strong revenue growth potential.
Nomura also adjusted its target for Zomato to ₹280 from ₹225, maintaining a “buy” recommendation. The brokerage sees significant growth potential in both food delivery and quick commerce, driven by improving profitability.
Citi described Zomato’s latest quarterly results as “stellar,” keeping its “buy” rating and increasing its price target to ₹280 from ₹235.
Jefferies maintained a “buy” rating with a revised target of ₹275, up from ₹230. While acknowledging potential volatility due to Blinkit’s expansion plans, Jefferies remains positive about Zomato’s long-term prospects.
Bernstein labeled Zomato a “core internet holding” and sustained its “outperform” recommendation, lifting its price target to ₹275 from ₹230.
Market Performance and Outlook
Following these positive updates, Zomato shares have risen 15.5%, diverging from the generally weak market trends. The stock is currently trading at ₹270.58, having reached an intraday high of ₹278.7. Impressively, Zomato’s stock has doubled in 2024, delivering returns of 120% so far this year.
