Zomato Share Price: Zomato is in news for several reasons including the high profit exits in the past few months and layoffs.
Zomato Share Price: Shares of Zomato traded under pressure on Dal Street on Tuesday, November 29, even as brokerage firm Morgan Stanley tagged ‘overweight’ rating on the counter. The stock quoted Rs 64 apiece on NSE at 10:20, down marginally by 0.50 per cent from the previous close of Rs 64.40.
Morgan Stanley in its report said that the exit of Amazon from the food delivery business in India has a material implication. Amazon has recently told its restaurant partners that it will stop operating its food delivery service in the country.
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“Exit of Amazon from food delivery business highlights barriers to scale business for a new entrant,” the global brokerage firm said. Morgan Stanley tagged an ‘overweight’ rating on Zomato for a price target of Rs 92.
Zee Business panellist and market expert Mudit Goyal said that the view on Zomato is positive and that the counter has taken support at Rs 62-63. It is, however, in a consolidation phase now.
He suggested investors to ‘hold’, adding that there is definitely a buying opportunity. He recommended keeping a stop loss of Rs 61. Zomato share price target, he said, would be Rs 74. Once the counter settles above Rs 74, the next target would be Rs 80.
Zomato is in news for several reasons including the high profit exits in the past few months and layoffs.
In 2022 so far, Zomato has tanked 55 per cent. In perspective, Zomato stock that was available for Rs 141.35 apiece on January 3, is now available at Rs 64. The stock’s 52-week range is Rs 158 – Rs 40.60.
