UBS Cuts Price Targets for Eternal, Swiggy Amid Increased Competition

• UBS has lowered its price target for Swiggy from ₹580 to ₹510 per share, while maintaining a 'buy' rating.
• The brokerage reduced adjusted EBITDA estimates for Eternal by 10-18% and for Swiggy by 12-28% for the next 2-3 years.
• Increased competition in the quick commerce segment and higher discounts are cited as reasons for the revised outlook.
• Despite recent share corrections, UBS notes that the growth outlook for both companies remains strong.
• Swiggy's shares fell 1% to ₹346.95, while Eternal (Zomato's parent) rose 1.6% to ₹299.20 on the BSE.

Why It Matters: UBS revised price targets for Eternal and Swiggy due to competition, but maintains a strong growth outlook.