Meesho shares: Fresh price target signals 24% upside as UBS raises growth estimates 

Shares of Meesho Ltd, which have surged 65% in six months, gained 12% in early deals today after global brokerage UBS raised its price target by 24%. The fresh price target is Rs 260 against the previous target of Rs 210.

Meesho shares rose 12% to Rs 244.80 in the current session against the previous close of Rs 219.05. Market cap of the online retail firm rose to Rs 1.11 lakh crore.

The stock has risen 38% in three months. The RSI of the stock stood at 64.4, signaling the stock is neither oversold nor overbought on charts.

The brokerage has raised its medium-term growth estimates, citing stronger expectations for both revenue expansion and margin improvement. While its FY27 estimates remain broadly unchanged, it has increased its FY29-FY31 net merchandise value (NMV) forecasts by 7-18%.

UBS made a similar upward revision to its contribution profit estimates, while its EBITDA projections for FY29-FY31 have been raised by 20-40%.

The higher NMV forecasts are supported by continued expansion in the platform’s seller and buyer base. The number of sellers increased 81% year-on-year to 1.04 million in Q1FY27, while buyers grew 29% YoY to 274 million. This growth, combined with a rapid increase in stock-keeping units (SKUs) and logistics partners, is expected to strengthen the platform’s growth momentum over the medium term.

The sharper rise in EBITDA estimates reflects expectations of a more favourable margin trajectory. The brokerage expects improving monetisation of advertising services and better logistics economics to drive operating leverage and support stronger profitability in the coming years.