Footech major Zomato's share price fell 5% to Rs 253 today after overseas stockbroker Jefferies downgraded it from "buy" to "hold" due to competition in the quick commerce segment.

Jefferies has also reduced Zomato's price from Rs 335 to Rs 275, representing a 1% upside potential. The international stockbroker also claimed that Zomato will consolidate this year.

The firm has decreased its EBITDA expectations for Zomato by 12% for FY26 and 15% for FY27, while also lowering its net profit estimations by 17% for FY26 and 18% for FY27. Zomato's earnings per share (EPS) have also been decreased by 20% and 21% for fiscal years 26 and 27, respectively.

Jefferies has decreased Blinkit's EBITDA prediction for FY26-27 and anticipates significant profitability problems, while reducing the target multiple for Zomato's quick commerce segment to 6X

However, Morgan Stanley, an international firm, has maintained a 'Overweight' rating on Zomato, with a target price of Rs 355. According to reports, Zomato is one of Bernstein's top stock recommendations in its Indian Strategy.

During the second quarter of the current fiscal year, Zomato's operating revenue increased by 68.5% quarter on quarter, reaching Rs 4,799 crore from Rs 2,848 crore in Q2 FY24. The Gurugram-based company's net profit increased by 4.8X to Rs 176 crore in the September quarter.

Zomato's 52-week high price was Rs 304.7 on December 9, 2024, and its 52-week low was Rs 121.6 on January 18, 2024. Currently, the Gurugram-based company is trading at Rs 253.3 (as of 11:40 a.m. today), with a total market capitalization of Rs 2,44,395 crore ($29 billion).