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Urban Company stock initiated with Underweight rating by Morgan Stanley

Published 23/10/2025, 09:02
Urban Company stock initiated with Underweight rating by Morgan Stanley

Investing.com - Morgan Stanley initiated coverage on Urban Company (URBANCO:IN) with an Underweight rating and a price target of INR117.00 on Thursday.

The research firm acknowledged Urban Company’s strong business moats and high barriers to scale, citing challenges of customer and supplier churn, competition from unorganized segments, and the risk of disintermediation by suppliers.

Morgan Stanley recognized the company’s pan-India scale across 17 main service categories and over 10,000 micro service markets, along with high contribution margins exceeding 60% and adjusted EBITDA profitability for the India business excluding Instahelp.

The firm projects core India consumer services business net transaction value growth of 18-22% annually over fiscal years 2025-2028, noting limitations around adding high-quality supply and high churn rates.

Morgan Stanley also mentioned that Instahelp, Urban Company’s newer offering, will help increase the addressable market by reaching new customer segments and service categories, but remains in nascent stages and will take time before making a meaningful contribution.

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