Nomura initiates coverage on Meesho with a ‘Reduce’ rating and a target price of Rs 167 per share, indicating about 28% downside from Meesho’s Thursday closing price. Following the call, Meesho shares fall, with one report noting a drop of up to around 5% to Rs 221.
Nomura’s assessment focuses on valuation concerns and expects pressures on the company’s margins. The brokerage also points to increasing competition from quick commerce, which it says could affect Meesho’s growth and profitability. At the same time, it expresses a positive view of Meesho’s asset-light model, suggesting the company’s operating structure remains a supportive factor even as near-term risks rise.
While the coverage details differ in emphasis between outlets, both reports center on the same broker view: a lower fair-value target and a cautionary stance on downside risk.
