Shares of Urban Company rose over 5 percent in early trade on Tuesday, October 27, after brokerage firms Morgan Stanley and Goldman Sachs shared their views on the company's business outlook following its analyst day.
The stock opened at Rs 137.90 on the BSE and rallied 5.38 percent to hit an intra-day high of Rs 142.90, compared with its previous close of Rs 135.60. At time of writing the report at around 10.05 am, Urban Company shares were trading 4.98 percent higher at 142.35.
The brokerages have put forth mixed perspectives, balancing between Urban Company’s strengthening core business and the costs of scaling new ventures. While Morgan Stanley remains optimistic about long-term profitability and structural growth in consumer services, Goldman Sachs acknowledges the potential for growth and margin gains but adopts a more conservative stance on valuation.
Morgan Stanley on Urban Company: Overweight, Target Price – Rs 190
Morgan Stanley gave an ‘Overweight’ rating on Urban Company, with a target price of Rs 190 per share, indicating a significant upside potential of 40 percent from the previous close.