Jefferies upgrades Eternal stock rating to Buy on improved outlook

Published 22/07/2025, 09:12
Jefferies upgrades Eternal stock rating to Buy on improved outlook

Investing.com - Jefferies has upgraded Eternal Ltd (ETERNAL:IN) stock rating from Hold to Buy, while significantly raising its price target to INR400.00 from INR250.00.

The upgrade follows what Jefferies described as a "mixed" first quarter for Eternal, but the firm highlighted management’s "significantly positive" commentary, especially regarding quick commerce operations, which marked a departure from previous quarter discussions.

Jefferies noted that while Eternal’s growth remained strong, the outlook on margins has improved as competitive pressures appear to have eased, with additional upside potential from first-party operations.

The research firm acknowledged that food delivery growth had moderated, but management expects a pickup with short-term margins remaining range-bound.

Jefferies indicated that progress in quick commerce suggests their earlier concerns about competition, which led to a downgrade in January 2025, were "unfounded," prompting the current upgrade to Buy.

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