The brokerage has downgraded Zomato from ‘Purchase’ to ‘Impartial’, and reduce its worth goal to ₹250 per share, and Swiggy to ‘Underperform’ from ‘Purchase’ with worth goal slashed to ₹325.
Shares of Zomato ended 2.5% decrease at ₹203.3 on Wednesday, and Swiggy closed at ₹323.9, down 3.9%.
BofA’s worth targets suggest 23% and 0.4% upsides for Zomato and Swiggy, respectively, from Wednesday’s closing degree. “Between Zomato and Swiggy, we discover Zomato higher positioned with scale and first-mover benefit in fast commerce, main to raised unit economics, larger margins and a stronger money place (therefore, Impartial). Given Swiggy’s larger losses in fast commerce, any extended worth battle would delay breakeven (therefore, Underperform),” it mentioned.
Shares of Zomato have declined 26%, and Swiggy is down 40.2% this yr.
