Shares of Meesho surged nearly 10% to Rs 189.90 on BSE on Wednesday after JP Morgan initiated coverage on the value-focused e-commerce platform with an ‘Overweight’ rating and a price target of Rs 215.

The US-based brokerage stated that “Meesho is building India’s first discovery-led marketplace that acts as a long tail ad network with embedded logistics for a fragmented retail market”.

JP Morgan expects the company’s net merchandise value (NMV) to scale at a 23% compound annual growth rate (CAGR) over FY26-31 without “heroic” annual transacting user (ATU) targets, driven by rising frequency, falling return-to-origin (RTO) orders and stronger growth in Mall and Content Commerce.

Strong margin expansion ahead

The brokerage sees significant…