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Nomura Warns: Meesho Share Price Could Plunge 28% Citing Key Risks
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CNBC TV18•25-09-2026, 07:39
Nomura Warns: Meesho Share Price Could Plunge 28% Citing Key Risks
- •Nomura initiated coverage on Meesho with a 'Reduce' rating and a price target of ’167 per share, implying a potential 28% downside.
- •The brokerage expects Meesho's net merchandise value (NMV) to grow at a 23% CAGR from FY27 to FY30, driven by online value commerce adoption.
- •Nomura highlighted Meesho's asset-light model, AI innovations, and improving free cash flow as positives, but flagged rising competition and quick commerce overlap as key risks.
- •Despite Meesho's growth, Nomura noted the stock trades at a premium to platforms like Eternal and Swiggy, which they believe have higher growth profiles.
- •UBS recently raised its price target for Meesho to ’260 from ’210, maintaining a 'Buy' rating, citing stronger growth and improved margins.
Key Questions Answered
Nomura initiated coverage on Meesho with a 'Reduce' rating and a price target of ₹167 per share. This target implies a potential downside of 28% from the stock's closing level on Thursday.
Nomura cited Meesho's asset-light business model, AI-led innovations, and improving free cash flow as key positive factors. Conversely, the brokerage flagged rising competition from horizontal platforms and potential overlaps with quick commerce as the main risks.
UBS raised its price target on Meesho from ₹210 to ₹260 while maintaining a 'Buy' rating. The upgrade was supported by higher FY29 to FY31 NMV estimates and improved EBITDA projections driven by stronger growth and margins.
