UBS and Goldman Sachs raise target prices for DMart and Zomato-parent Eternal, projecting strong upside potential.
Stocks React to Positive Analyst Ratings
Shares of Avenue Supermarts and Eternal (Zomato’s parent company) saw a rise of around 2% each on September 18, driven by bullish updates from global brokerage firms UBS and Goldman Sachs. However, both stocks closed the next day marginally lower by 0.9%, likely due to profit booking after the rally.
UBS Upgrades Avenue Supermarts
UBS raised its target price for Avenue Supermarts (DMart) from ₹5,050 to ₹5,600, signaling an upside potential of nearly 19% from the stock’s previous close at ₹4,717.3.
Key highlights from UBS’s note:
- DMart is seen as a “major compounder” in India’s consumption-driven economy.
- The brokerage expects a sharp acceleration in store rollouts, boosting long-term growth.
- It praised DMart’s value-based retail model that targets middle and lower-middle income consumers.
- E-commerce expansion remains a strong supporting factor for future performance.
Following the note, Avenue Supermarts’ shares rose nearly 2% to an intraday high of â‚ą4,818, before closing about 1% higher at â‚ą4,753.20.
Goldman Sachs Hikes Eternal’s Target Price
Goldman Sachs revised its target price for Eternal (Zomato’s parent) from ₹340 to ₹360, estimating a 10% upside from its prior close of ₹328.25.
Highlights from the brokerage note:
- Growth in Blinkit, Eternal’s quick commerce platform, continues to impress.
- Blinkit’s EBITDA breakeven is expected by December 2025, with margins likely to expand by 240 basis points in the next two quarters.
- The report notes that Blinkit’s value isn’t yet fully priced in, indicating room for further stock appreciation.
Eternal shares reacted strongly, climbing around 2% to an all-time high of â‚ą335 following the announcement.
Market Sentiment Remains Positive
The upgrades reflect strong institutional confidence in both companies:
- Avenue Supermarts is expected to benefit from expansion plans and India’s rising consumer spending.
- Eternal is seen as a key player in the evolving quick commerce space, with Blinkit leading the charge.
Despite the slight decline in prices the following day, analyst sentiment remains optimistic, supporting the possibility of near-term and long-term gains.
