- Zomato’s stock skyrocketed 260% since April 2023.
- Analysts revised forecasts, projecting profits for Zomato.
- Some analysts justify it, citing Zomato’s potential for substantial future revenues.
Zomato’s stock price has soared an astonishing 260% since April 2023, prompting analysts to revise their forecasts for the food discovery app.
Bloomberg Intelligence data reveals that price target increases for Zomato have outpaced those of ride-sharing and delivery firms worldwide, including projections from industry giants like Citigroup and HSBC Holdings.
Analysts serve up a tasty profit forecast
Zomato’s growing operations have helped dispel concerns about losses, leading analysts to change their estimates for the company to profits.
Goldman Sachs Group projects a profit boost for Zomato’s quick commerce arm, Blinkit, given the company’s recent performance.
Zomato acquired Blinkit for US$ 570 million in 2022, despite early investors questioning the profitability of Blinkit’s business model at the time.
A five-star rating or a bit overcooked?
Zomato’s shares already reflect over US$300 million in profits, having recently hit break-even. Some have expressed concern about the high valuation.
Still, analysts like Abhisek Banerjee from ICICI Securities justify it, citing the high revenues and profits that Zomato could generate in the future.
To read the original article: https://www.techinasia.com/analyst-expectations-rise-zomato-stock-price-surges-260-yoy
