Eternal shares rise 3% after Goldman Sachs says 'we disagree over extent of bearishness'

Eternal shares rise in trade. 

Eternal shaers rose more than 3 percent in intraday trade on Friday after global brokerage Goldman Sachs reiterated its “buy” rating on the stock.

On the National Stock Exchange (NSE), the stock climbed 3.3 percent to an intraday high of Rs 292.90 per share. This marked the third straight session of gains for the stock.

The rally followed Goldman Sachs reiterating its positive stance on Eternal, saying it disagreed with the extent of bearishness being priced into the online food-delivery firm’s stock.

Eternal has declined about 17 percent over the past three months, compared with a 3 percent rise in the benchmark indices.

Goldman Sachs maintained its “buy” rating on the company but trimmed its price target to Rs 375 from Rs 390 earlier. Eternal is the parent company of food delivery platform Zomato and quick-commerce firm Blinkit.

The brokerage said the recent 14.6 percent sell-off in the stock during the October–December period, compared with a 6.2 percent gain in the Nifty 50, reflected concerns over heightened competition and expectations of a slowdown in quick commerce.

"We disagree with the extent of bearishness being priced into ETEA," Goldman Sachs said.

(Inputs from Reuters)

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