Meesho shares crack 5% as weak Q2 outlook spooks Street; Citi, Morgan Stanley react

Meesho shares fell 5% after a weak Q2 outlook spooked investors, as the company shifted its flagship Mega Blockbuster Sale to Q3 from Q2 last year. Q1FY27 loss narrowed to Rs 133 crore from Rs 289 crore YoY, while marketplace revenue rose 48% YoY to Rs 3,707 crore, but revenue came slightly below estimates. Brokerages were split: Citi retained Buy with a raised target of Rs 220 citing strong pricing power, Morgan Stanley kept Equal Weight at Rs 190 flagging an order growth miss, and JM Financial stayed Reduce at Rs 185 citing elevated valuations of around 45x FY29E EV/Adjusted EBITDA.