Zomato Gets ‘Underperform’ Rating From Macquarie On Flat User Growth


Shares of Zomato Ltd. gained the most in nearly a week even as Macquarie initiated coverage with an ‘underperform’ rating citing a lack of any momentum in user additions.

To meet consensus estimates on users, the online food ordering platform needs to see at least 70 lakh new monthly transacting users each year for the next 10 years, the research house—the first to predict the downfall in Paytm’s stock ahead of its listing—said in its June 13 report.

“Our key concern is that even in this ‘early growth phase’ momentum has stalled with monthly transacting users essentially flat over the past three quarters. Key app engagement metrics such as downloads and monthly and daily active users also show a similarly soft picture.”

The research firm expects Zomato to maintain its dominant position in India’s “potentially large food delivery market”, but sees “limited evidence” of a “significant growth ramp” towards the 10 crore monthly user figure.


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