Morgan Stanley has increased its price objective for Zomato Ltd. by 31% because the international brokerage believes Zomato is a crucial bet due to its leading position in meal delivery, favorable market structure, outstanding execution in the expanding rapid commerce segment, and robust financial sheet.

Although Morgan Stanley believes that Zomato's excellent growth prospects and solid execution would sustain premium multiples, the stock value looks costly.

The breakarge has lowered its F25 adjusted Ebitda prediction for Zomato by 5% for the time being as it is making larger assumptions about investments in the rapid commerce industry. Morgan Stanley reported that it has issued predictions for FY27 and increased its estimate for FY26 by 13.4 percent.

The global brokerage Morgan Stanley has raised its price target for Zomato Ltd. by 31% because it sees the company as a critical investment given its dominant position in meal delivery, advantageous market structure, excellent performance in the growing fast commerce sector, and strong balance sheet.

Zomato's strong growth potential and strong execution, according to Morgan Stanley, should support premium multiples, but the stock seems expensive.

For the time being, the breakarge has reduced its F25 adjusted Ebitda projection for Zomato by 5% since it is making more assumptions regarding investments in the fast-paced consumer goods sector. According to Morgan Stanley, it has revised its projection for FY26 by 13.4% and released predictions for FY27.