Key facts
- Macquarie initiated coverage on Meesho with an 'Underperform' rating.
- Macquarie set a target price of Rs 125 for Meesho.
- The target price implies a potential 25% downside.
- Concerns include declining average order values and modest per-order economics.
Macquarie has initiated coverage on the e-commerce platform Meesho, assigning it an 'Underperform' rating. The brokerage also set a target price of Rs 125 for the company's stock, which suggests a potential downside of approximately 25%. Macquarie's assessment is based on concerns that declining average order values and modest per-order economics could hinder Meesho's profitability. This is despite the company's reported strengths in user growth, improving engagement metrics, and a focus on generating free cash flow.