Zomato share price falls 5%: Is it the time to sell or hold?
Big drop in Zomato share
Food delivery aggregator and quick commerce company Zomato's share fell by 4.61% during early trading on Tuesday, January 7.
Zomato Share Price
As of 11:30 am on Tuesday, January 7, 2025, Zomato's share is trading at Rs 252.65, down nearly 5 percent.
Can Zomato decline?
Global brokerage firm Jefferies has downgraded Zomato's rating from buy to hold. The target for this share has been cut by up to 18%.
Zomato Share Price Target
Jefferies has reduced the target price on Zomato shares from Rs 335 to Rs 275. The brokerage says that increasing competition in the quick commerce space is a concern for profits.
What does Jefferies say about Zomato?
Jefferies says that year 2025 could be one of consolidation for Zomato shares. In addition to Blinkit, the market has several platforms like Swiggy's Instamart, Zepto, and Amazon.
What will be the challenge for Zomato?
Jefferies said Zomato's shares saw double-digit increase in 2024. Increasing competition in the quick commerce space is a challenge for the company. This can affect profits.
Sell rating on Zomato shares
Of the 26 analysts covering Zomato's stock, 23 have recommended a buy, while Jefferies and two others have given a sell rating on the stock.
Note
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