Now Reading: Meesho shares jump 9% after UBS raises target to ₹260
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Meesho shares jump 9% after UBS raises target to ₹260
Meesho shares surged nearly 10% to ₹240 on the BSE after UBS maintained a 'Buy' rating and raised its target price to ₹260 from ₹210. The brokerage raised Meesho's FY29-FY31 net merchandise…
Meesho shares surged nearly 10% to ₹240 on the BSE after UBS maintained a 'Buy' rating and raised its target price to ₹260 from ₹210. The brokerage raised Meesho's FY29-FY31 net merchandise value (NMV) estimates by 7%-18% and EBITDA forecasts by 20%-40%, citing expansion of buyer and seller ecosystems and better advertising monetisation. The stock is trading 115% above its IPO price of ₹111.
UBS expects Meesho's earnings to grow faster than NMV as logistics costs decline and advertising margins improve. The Hindubusinessline reports management remains confident of low-30s NMV growth in FY27 despite Diwali shifting to November. Livemint notes advertising margin is the key to profitability, with logistics margin expansion expected to bring adjusted-EBITDA breakeven within two to three quarters. Meesho narrowed its net loss 54% YoY to ₹132.8 crore in Q1FY27.
Competition is rising as Amazon's Bazaar and Flipkart's Shopsy replicate Meesho's zero-commission model. Livemint flags new ventures in financial services and logistics posted a ₹39 crore loss in Q1FY27. UBS values the stock at a 40x EV/EBITDA multiple on average FY30-31 earnings.
Indian Opinion Analysis
All three sources report the same upgrade and numbers, but their framing diverges on what drives future value. Inc42 and The Hindu Businessline lead with UBS's target and estimates, implicitly endorsing the bull case of ecosystem expansion turning profitable. Livemint, while reporting the same facts, front-loads a caution: advertising margin, not logistics, is the key to profitability, and also flags competition from Amazon and Flipkart. The uniform omission is any direct quote from Meesho management on timeline. The balanced reading: UBS's projections assume advertising monetisation doubles and logistics costs keep falling, but both assumptions face execution risk as rivals copy Meesho's model and new ventures bleed cash. The Q2FY27 results will test whether the 25% NMV CAGR target is on track.
Coverage: 3 sources, 3 neutral
Sources (3): inc42.com (neutral report), thehindubusinessline.com (neutral report), livemint.com (neutral report)
This brief was synthesised by AI from the 3 sources linked above, so one read covers every framing they carry.
Updated: this story now draws on 3 sources.
