HSBC Warns: Eternal, Swiggy Face Headwinds, Price Targets Cut Amid Competition

• HSBC cut price targets for Eternal and Swiggy, citing near-term headwinds and rising competitive intensity in quick commerce.
• Blinkit's higher pricing (6-8% above competitors) could lead to market share loss, according to HSBC.
• Long-term concerns include AI impact and heightened competition, despite valuations appearing reasonable.
• Eternal's rating maintained 'Buy' but TP cut to ₹300 from ₹350; Swiggy's 'Hold' rating retained, TP cut to ₹300 from ₹380.
• Both Swiggy and Eternal recently increased platform fees to boost profitability, offsetting lower delivery charges.