Mumbai, December 4, 2024: Swiggy’s share price surged by 7% following a “buy” rating and coverage initiation by UBS. The brokerage set a target price of ₹515, representing a potential upside of 19.6% from the stock’s current market price. UBS also noted that Swiggy’s valuation is currently 35-40% lower than that of its competitor Zomato, a gap that is expected to narrow as Swiggy continues its growth momentum.
UBS projected Swiggy’s Gross Merchandise Value (GMV) will grow at a Compound Annual Growth Rate (CAGR) of 35% from fiscal 2024 to 2027, with revenue growth pegged at a CAGR of 29%. The company is expected to benefit from strategic improvements in margins and efforts to regain market share from Zomato, which have been recognized as key factors contributing to Swiggy’s positive outlook.
The stock’s positive movement comes as Swiggy prepares for continued growth, with analysts optimistic about its long-term potential. The brokerage’s target price indicates confidence in Swiggy’s ability to maintain a strong position in the competitive food delivery market.
