Zomato stock in focus as JP Morgan sees 40% upside as scale to help in monetisation
Zomato stocks are gaining ground as the brokerage sees strong upside for the company.
Zomato share price are in focus in Thursday's session as the global brokerage has continued with its overweight call on the stock with a higher revised target of Rs 340. This suggests a potential upside of 40 per cent from the last close. In the previous trading session, the stock ended lower by 2 per cent at Rs 242.9 per share on the BSE.
The brokerage has pegged the share price of its Quick Commerce businesss to Rs 150 per share.
The brokerage said that the company is transforming consumer behaviour in a big way via its Quick Commerce (QC) business. The brokerage noted that the company is scaling Blinkit through convenience and selection-focused approach. Additionallly, the brokerage held that Blinkit will lead disruption in modern trade as well as quick commerce.
The company at a rapid scale is gearing up to deepen its presence in all major metros. The company until 2026 plans to have a total of 2,000 stores.
Also, the brokerage expects the company's stores to turn EBITDA soon. Also, with the inclusion of the ticketing business, the company's going out business will expand more.
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