UBS Cuts Swiggy, Eternal Price Targets Amidst Rising Quick Commerce Competition

• UBS, a Swiss investment bank, has lowered price targets for Swiggy and Eternal (Zomato parent) due to increased competition in the quick commerce sector.
• Eternal's price target was reduced to ₹375 from ₹400, while Swiggy's was cut to ₹510 from ₹580, both retaining a 'Buy' rating.
• The brokerage noted intensified competition and higher discounting in quick commerce, though food delivery growth is improving with stable competition.
• UBS revised down adjusted EBITDA estimates for Eternal by 10-18% and for Swiggy by 12-28% for the next 2-3 years.
• Despite the cuts, UBS remains positive on the sector, citing recent stock corrections and a strong growth outlook.

Why It Matters: UBS reduced price targets for Swiggy and Eternal due to quick commerce competition, but maintains a positive outlook.