India's Meesho rises as UBS hikes PT on margin momentum
BUZZ-India's Meesho rises as UBS hikes PT on margin momentum ** Shares of Meesho MEES.NS rise as much as 6.27% to 232.90 rupees
** UBS maintains "Buy" on MEES and raises its PT to 260 rupees from 210 rupees, citing stronger medium-term growth and a faster margin improvement trajectory
** Sees contribution margins improving, driven by better monetisation and logistics economics, with margins forecast at about 5% by end-FY27 and 5.6% by end-FY28
** Says growth outlook remains strong and forecasts about 25% net merchandise value CAGR over FY26-31, supported by new customer additions and higher purchase frequency among existing users
** UBS also raises FY29-31 NMV estimates by 7%-18% and EBITDA estimates by 20%-40%
** Sixteen analysts have a "hold" rating on average ; median PT is 215 rupees - LSEG-compiled data
** YTD, MEES up ~26%
(Reporting by Urvi Dugar in Bengaluru)
((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))
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