Goldman Sachs, Morgan Stanley begin coverage on India's Urban Company

Urban

23/10/2025 04:40

** Goldman Sachs initiates coverage on Urban Company  URBN.NS with "neutral" rating, price target of 140 rupees - an 11% discount to last closing price; adds, co's strength is reflective in its "premium valuations"

** Morgan Stanley starts with "underweight," price target of 117 rupees, implying 26% downside from last close; says stock's "growth is in the price"

** URBN's business model is defensible, co has strong execution track record - GS

** Expects rev CAGR of 24% over FY25-30

** MS says co has large addressable market in online home services, supported by competitive moats and experienced founding team

** Expects co's consumer services net transaction value to grow at 18-22% CAGR over FY25-28

** Says, however, investments in Instahelp will likely hit near-term profitability

** URBN down 5.4% since debut, as of Tuesday's close

 (Reporting by Manvi Pant)