Morgan Stanley, CLSA bullish on Zomato after solid Q4, check target prices

A slew of international brokerages including CLSA, Bernstein, Morgan Stanley, Jefferies, Nomura, and CITI have reiterated their bullish outlook on Zomato, with target prices revised upwards after the food delivery and quick commerce giant maintained its profitability in the March quarter of Fy24 (Q4FY24). These brokerages see an upside potential of up to 28 per cent in Zomato’s stock over the next one year.

CLSA has upgraded its rating to a ‘Buy’ call, with the target price raised to Rs 248. The firm highlighted Zomato’s strong guidance for Blinkit and steady performance in food delivery, despite Employee Stock Ownership Plan (ESOP) costs impacting profits in Q4.