JPMorgan says Swiggy an ‘underappreciated winner’, sees 25% upside in stock price

Swiggy shares, which have already run up close to 50 per cent from their IPO price of ₹390, still have more room to run, according to JPMorgan as the brokerage initiated coverage on the stock with a ‘buy’ rating and a target price of ₹730.

JPMorgan's price target implies a potential upside of 25 per cent in food delivery aggregator's shares from Thursday's closing levels of ₹582.2. This is also the highest price target for Swiggy's shares.

JPMorgan's rating action comes just a few days after CLSA ascribed a target of ₹708 with an "Outperform" rating. BofA also has coverage on the stock with a 'buy' rating and a target price of ₹690. The brokerage noted that the company's food delivery segment is serving as the cash cow business, while Quick Commerce (QC) is a multi-year theme. JPMorgan analysts see several positive catalysts for the company over the next six quarters. Swiggy may also witness rising momentum on the year and catch up on profit vs Zomato in both the food delivery and quick commerce businesses.