Zomato (ZOMATO) share price has jumped in the past five days straight as sentiment in the company improved. The stock jumped to a high of ₹60.70, the highest point since December 30th of last year. It has jumped by ~30% above the lowest point this year.
Zomato shares upgraded
Zomato has made several headlines in the past few weeks. The most significant news was the decision by the company to revise its payment model. This new model means that each rider or driver will receive a $0.18 per delivery, with the amount increasing depending on the distance. Before the new regime, these workers were receiving 30 cents, even as inflation jumps.
As a result, the company’s Blinkit has lost about 1,000 riders in Delhi. Some of those workers have moved to Swiggy and Zepto.
Despite all this, analysts are bullish about the Zomato share price. In a note, an analyst from MOFSL said that he believes that the shares have more upside, thanks to the company’s total addressable market. He believes that many industries like food delivery have more upside ahead in India. He said:
“For a market like India, the fact remains that for many of these things, whether it is food delivery or fintech, we are at a decent stage and there is a long runway of growth.”
He is not the only one bullish on Zomato. In a recent note, analysts at Citigroup said that the company has more ways to unlock its monetization. One of these monetization ways is the launch of dining-out promotional events. The analysts believe that the company will use these events to make money from restaurants and customers. Citi believes that the Zomato share price will jump to Rs 76 while MOFSL expects it to hit Rs 80.
Zomato share price forecast
Zomato chart by TradingView
On the daily chart, the Zomato stock price has made a strong bullish recovery in the past few days. It jumped to a high of Rs 56.60, the highest point on Feb 9, Feb 24, and March 9. The shares jumped above the 25-day and 50-day moving averages. It has moved below the 23.6% Fibonacci Retracement level.
Therefore, the shares will likely continue rising as buyers target the next key resistance point at Rs 75.10, the highest point on November 14. This price is about 29% above the current level. The stop-loss of this trade is at Rs 50.
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