Shares of Meesho Ltd. gained over 11% on Tuesday, September 22, after brokerage firm UBS increased its target price on the stock. This is the biggest single-day gain for the stock in the last three months. UBS maintained its "buy" recommendation on Meesho and has raised its target price to ₹260 per share from the previous ₹210 apiece.
This indicates an upside potential of 18.6% from its previous closing price. Along with raising its price target, UBS has also increased Meesho's Net Merchandise Value estimates by 7% to 18% over financial year 2029-2031. Its contribution profit estimates have also been increased by a similar quantum, while estimates for its Earnings Before Interest, Tax, Depreciation and Amortisation estimates for the same timeframe have also been raised between 20% to 40% by UBS.
Meesho's higher NMV forecasts reflect continued flywheel from sellers, who are up 81% year-on-year to 1.04 million in the first quarter when compared to the same quarter last year, while buyers went up by 29% to 274 million, coupled with a rapid expansion in stock keeping units and logistics partners.
The Flywheel is a business cycle where low prices and wider product variety attracts more customers, which in turn attracts more sellers to the platform as well. A larger increase in EBITDA reflects a stronger medium-term margin trajectory, driven by improving ads monetization and logistics economics, UBS said.
Meesho reported its first quarter earnings in July. Its net loss narrowed to ₹132.8 crore from ₹289.4 crore last year. Its revenue increased 48% to ₹3,712 crore from ₹2,503.9 crore. The company's earnings before interest, taxes, depreciation and amortization loss contracted to ₹224.7 crore from ₹264.4 crore in the year-ago period.
A total of 18 analysts have coverage on Meesho. Of these, 10 have "buy" recommendations, three have "hold" ratings and five have "buy" recommendations. Meesho shares listed on the stock exchanges on December 10, 2025. The stock has gained 47.3% from its listing price of ₹162.5 apiece and has surged 115.7% from its issue price of ₹111.
Shares of Meesho are now trading 11% higher on Tuesday at ₹243.52. The stock has now extended its year-to-date advance to 35%. The stock is nearing its post-listing high of ₹254.