Zomato Stock Plummets: Macquarie Predicts Further Decline Amidst Q3 Miss
Zomato's share price has fallen 17% so far in 2025 and could drop another 44% according to Macquarie's target price post Q3 results. Macquarie sees Zomato as an efficient quick commerce and food delivery platform but finds limited margin of safety for the shares. They predict a mild downside to consensus forecasts for a 20% 3-year GOV CAGR and 4.5-5% adjusted Ebitda margin for FY26-28. Q3 results likely saw higher marketing spending, leading to an adjusted Ebitda margin of -1.3% of GOV, below expectations of near breakeven. However, the adjusted Ebitda margin did expand by 75 bps QoQ to 4.3% of GOV.
Wed Jan 22 2025
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