Zomato, Swiggy Shares Plunge Following BofA Downgrades

Shares of Indian food delivery giants

and !Swiggy experienced significant declines on Tuesday, March 26th, after Bank of America (BofA) Securities downgraded both stocks and slashed their respective target prices. Zomato shares fell nearly 3%, trading at ₹204 apiece, while Swiggy shares dropped 1.48% to ₹333. This downturn reflects investor concerns following BofA's revised outlook.   BofA's Analysis: Zomato: BofA Securities downgraded Zomato from "Buy" to "Neutral," reducing the target price from ₹300 to ₹250 per share. Despite the cut, this new target still suggests a potential upside of approximately 19% from the previous closing price.   Swiggy: Swiggy faced a more severe double downgrade, moving from "Buy" to "Underperform." BofA also significantly lowered the target price from ₹420 to ₹325 per share, indicating a potential downside of nearly 4% from the previous close.