Swiggy share price gains 7% as UBS initiates coverage with ‘buy’ rating

Swiggy rallied 7 per cent on Tuesday after UBS initiated coverage on the stock with a “buy” rating, citing “significant” valuation discount to rival Zomato. The brokerage has set a 12-month price target of Rs 515. Shares of Swiggy ended at Rs 462, valuing the company at Rs 1.03 trillion.

“Our price target is derived from a combination of discounted cash flow and multiples-based sum of the parts, with assumptions that are broadly similar to what we have for Zomato.