Zomato Shares Surge 3% as Goldman Sachs Defies Bearish Sentiment

Eternal Shares Jump on Analyst Confidence

Eternal shares experienced a significant intraday rally on Friday, surging by more than 3 percent. The upward movement was primarily driven by global investment bank Goldman Sachs reiterating its 'buy' recommendation for the online food-delivery firm. The stock reached an intraday high of ₹292.90 on the National Stock Exchange (NSE), marking the third consecutive session of gains. This positive momentum signals a potential shift in investor sentiment, buoyed by institutional support. ### Goldman Sachs' Bullish Stance Goldman Sachs expressed its disagreement with the prevailing bearish sentiment surrounding Eternal. The brokerage maintained its 'buy' rating, signaling confidence in the company's long-term prospects. However, it slightly adjusted its price target downward to ₹375 from an earlier ₹390. This analyst conviction comes amidst a challenging period for the stock, which has seen a nearly 17 percent decline over the past three months. This contrasts sharply with the benchmark indices, which posted a 3 percent gain during the same timeframe. ### Context of Market Sentiment The brokerage firm pointed to the recent 14.6 percent sell-off in Eternal shares during the October-December quarter as a reflection of market concerns. Investors were reportedly worried about increasing competition and a potential slowdown in the quick-commerce sector, which is a key segment for Eternal's parent entity, Zomato. Goldman Sachs' note, stating, "We disagree with the extent of bearishness being priced into ETEA," suggests that the market may be overreacting to these challenges, presenting a potential buying opportunity for investors who align with the bank's view.