Macquarie has initiated coverage on shares of e-commerce platform Meesho with an ‘Underperform’ rating, citing concerns that declining order values are weighing on the company’s unit economics despite strong order growth and a focus on free cash flow generation.
It set a target price of Rs 125 per share for Meesho, implying a downside potential of nearly 25% from the stock’s previous closing price of Rs 165.95 apiece on NSE. “The current share price embeds Meesho's growth flywheels remaining in overdrive for the next five years alongside sharp platform monetisation,” it added.
