BofA Downgrades Swiggy, Zomato Amid Rising Losses

CosmicTaco · 2025-03-27T11:38:35.206930+05:30

- BofA Securities has downgraded Zomato and Swiggy due to concerns over future growth prospects. - Zomato’s rating was lowered to 'Neutral' from 'Buy,' with a target price cut to INR 250 per share. - Swiggy’s rating was reduced to 'Underperform' from 'Buy,' with a price target of INR 325 per share. - The brokerage anticipates increased losses in the quick commerce sector in the next 12-15 months. - New entrants in the QC segment are expected to drive higher losses due to platform-led discounts and marketing expenses. Source: [Inc42](https://inc42.com/buzz/bofa-downgrades-swiggy-zomato-citing-rising-losses-in-q-com-slow-growth-in-food-biz/?_gl=1*1eskdkx*_gcl_au*MTMwODg2MjMuMTczNzY5NjMzMA..*_ga*MTE1MDE4MjYyMi4xNzM3Njk2MzMw*_ga_67F2T4M6Z5*MTc0MzA1NTQxMi4xMy4wLjE3NDMwNTU0MTIuNjAuMC4w)

BofA Securities has downgraded Zomato and Swiggy due to concerns over future growth prospects.
Zomato’s rating was lowered to 'Neutral' from 'Buy,' with a target price cut to INR 250 per share.
Swiggy’s rating was reduced to 'Underperform' from 'Buy,' with a price target of INR 325 per share.
The brokerage anticipates increased losses in the quick commerce sector in the next 12-15 months.
New entrants in the QC segment are expected to drive higher losses due to platform-led discounts and marketing expenses.

Source: Inc42