Meesho shares extended their decline on Monday, January 12, falling 3% as the newly-listed e-commerce company faced continued market volatility. The stock traded at ₹165.50, reflecting investor caution following mixed trading sessions in recent days.

BofA Securities Initiates Coverage

BofA Securities launched coverage of Meesho with a neutral rating and established a price target of ₹190 per share. The brokerage highlighted the company's strategic positioning in the value-focused mass market segment as a key strength.

Growth Projections and Financial Outlook

BofA Securities presented optimistic projections for Meesho's operational metrics. The brokerage expects the company's net merchandise value (NMV) to grow at a compound annual growth rate of 26% between FY26 and FY29.

The financial trajectory shows significant improvement potential, with adjusted EBITDA margin projected to shift from negative 3% in FY26 to positive 3% by FY29. This turnaround reflects the company's path toward profitability as it scales operations.

Market Position and Growth Drivers

BofA Securities identified several key tailwinds supporting Meesho's growth prospects:

• Market Share Expansion: Opportunities to capture larger portions of the e-commerce market
• Fintech Business Scale-up: Growth potential in financial services offerings
• Grocery Segment Entry: Expansion into the grocery delivery market

The brokerage noted that current valuation levels appropriately reflect the company's strong fundamental position in the competitive e-commerce landscape.

Share Unlock and Analyst Sentiment

Meesho recently experienced the expiry of its one-month shareholder lock-in period, making approximately 109.9 million shares eligible for trading. These shares represent nearly 2% of the company's outstanding equity, though their availability doesn't guarantee immediate market sales.

Analyst coverage remains mixed but generally positive, with three of five analysts maintaining buy ratings, while one each assigned hold and sell recommendations.

Stock Performance Analysis

Despite recent volatility, Meesho shares continue trading substantially above their IPO price of ₹111, maintaining approximately 50% gains for investors who participated in the initial offering. However, the stock has retreated about 35% from its post-listing peak of ₹254 and declined close to 9% in 2026.

Bank of America Securities has initiated research coverage on Meesho, the Indian e-commerce platform, with a neutral rating and a target price of ₹190.00 per share. This marks the investment bank's entry into formal coverage of the company's stock performance and market outlook.

Coverage Details

The brokerage's decision to begin coverage reflects Meesho's growing prominence in the Indian e-commerce landscape. The neutral rating suggests that Bank of America Securities views the stock as fairly valued at current levels, with the ₹190.00 target price providing a benchmark for the firm's valuation assessment.

Market Implications

The initiation of coverage by a major international investment bank like Bank of America Securities indicates institutional interest in Meesho's business model and market position. A neutral rating typically suggests that analysts see the stock as appropriately priced relative to its fundamentals and growth prospects, neither significantly overvalued nor undervalued at current market levels.