Despite headwinds, Jefferies recommends buying Zomato stock. Here's why

With the sharp fall in its share price since listing, analysts at Jefferies suggest long-term investors 'buy' the stock

Shares of Zomato have tanked nearly 23 per cent in the last two trading sessions after the one-year freeze on all its pre-IPO (initial public offering) shareholding ended. Despite the concerns surrounding the profitability of the company, the acquisition of Blinkit —which experts feel will only lengthen its road to profitability — and the sharp fall in its share price since listing, analysts at Jefferies suggest long-term investors 'buy' the stock. They maintain a price target of Rs 100 as their base case.

Worries of tightening by the US Federal Reserve are weighing on the profitless Internet names globally, analysts said.