Meesho Shares Climb on JP Morgan's Bullish Outlook

Shares of Indian e-commerce platform Meesho experienced a notable surge, climbing nearly 10% following JP Morgan's initiation of coverage with an 'Overweight' rating and a price target of Rs 215. The brokerage firm's positive assessment centers on Meesho's robust potential for earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expansion, coupled with strong growth in net merchandise value (NMV). JP Morgan's analysis attributes this projected growth to several key operational enhancements. Specifically, the firm pointed to increased advertising monetization efforts and significant improvements in logistics infrastructure as primary drivers. These strategic initiatives are expected to bolster Meesho's profitability profile and market position. Furthermore, the investment bank forecasts a substantial recovery in free cash flow, indicating an improving financial health and liquidity outlook for the company. The report also anticipates Meesho will maintain its leadership position within the competitive e-commerce landscape, underscoring its operational efficiency and market penetration strategy. This endorsement from a major global financial institution signals increased investor confidence in Meesho's long-term growth trajectory and operational strategy within the burgeoning Indian digital retail sector.