Meesho Stock Rises After UBS Lifts Target Price to ₹260
E-commerce firm Meesho saw its stock surge nearly 9.3% after UBS reiterated a 'Buy' rating and raised its price target to ₹260 from ₹210.
Meesho, the India-based e-commerce company, experienced a significant jump in its stock price, reaching as high as a 9.3% increase during intraday trading on Thursday. This surge followed an announcement by financial services firm UBS, which maintained its 'Buy' rating on Meesho's stock and elevated its price target to ₹260 from a previous ₹210.
The stock touched an intraday high of ₹239.45 on the BSE. At the time of reporting, it was trading at ₹238.55, marking an 8.9% increase. The revised target price from UBS suggests a potential further upside of approximately 9% from the current trading level. Meesho's market capitalization stood at approximately ₹1.10 Lakh Crore, equivalent to around $11.5 billion.
UBS attributed its upgraded net merchandise value (NMV) estimates for Meesho for fiscal years 2029-2031 to the ongoing expansion of the company's buyer and seller ecosystems. The brokerage also cited rapid growth in stock-keeping units (SKUs) and logistics partnerships as key drivers. Furthermore, UBS anticipates that Meesho's earnings will outpace NMV growth in the medium term, driven by improved advertising monetization and enhanced logistics economics.
Meesho, which listed on the stock exchange in December of last year, is currently trading approximately 115% above its initial public offering (IPO) price of ₹111. The stock is trading about 6% below its 52-week high of ₹254.65.