Zomato & Swiggy Downgraded: Should Investors Be Worried?

Zomato and Swiggy are under the spotlight after Bank of America Securities slashed their target prices. Swiggy was downgraded from “Buy” to “Underperform,” with a revised target of ₹325, while Zomato’s target was cut from ₹300 to ₹250 and given a neutral rating. Despite the downgrades, experts like Gaurang Shah, Senior VP at Geojit Financial Services, remain optimistic. He believes both companies are well-positioned in the quick-commerce space, expanding their market share and investing in long-term growth strategies. While short-term challenges may persist, Shah says these are fundamentally strong businesses with the potential to deliver solid returns ahead.