- 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.
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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.
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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