Friday, August 14
International brokerage Morgan Stanley has initiated coverage on newly listed Meesho with an Equal-weight rating and a target price of Rs 169 per share, citing full valuations following the stock’s strong post-listing run-up. The target price suggests an upside of about 3% from current levels.The brokerage said valuations look full as Meesho’s advertising business remains at an early stage of monetisation, while the company continues to focus on rapid user expansion. Consequently, Morgan Stanley expects steady-state profitability to be a few years away.The brokerage believes investors are likely to value the business either by discounting FY31 adjusted EBITDA margins back to the present or by applying an EV to NMV multiple on FY28 estimates, similar to the EV to revenue approach used f
