Jefferies upgrades Swiggy to buy with Rs 500 target price but calls it high risk-high reward play

Food delivery and quick commerce player Swiggy, whose shares were trading 4% lower on Friday morning after reporting a doubling of losses in Q1, saw global brokerage firm Jefferies upgrade the stock to ‘Buy’ with a target price of Rs 500.

“With a pause on dark store expansion and easing competition, Q1 profitability likely marked the trough. Swiggy, however, remains prone to high volatility due to a low-margin base,” Jefferies said while upgrading the stock to ‘Buy’ with a high risk-reward profile.