Business
Bernstein backs Eternal, Swiggy despite AI concerns, still sees up to 60% upside
Bernstein backs Eternal, Swiggy despite AI concerns, still sees up to 60% upside
About this update from Eternal Limited
Shares of food delivery and quick commerce platforms Swiggy Ltd. and Eternal Ltd. will remain in focus on Wednesday, February 25, after brokerage firm Bernstein reiterated its bullish stance on both stocks. Swiggy shares have declined for four straight sessions, while Eternal has fallen for six consecutive days. Bernstein has maintained an 'Outperform' rating on Eternal with a price target of ₹370 per share. It has also assigned an 'Outperform' rating to Swiggy, with a price target of ₹500. In a note on the quick commerce segment, the brokerage said it expects Indian consumers to increasingly use AI apps as part of their shopping journey. However, it believes that without meaningful on-ground infrastructure, AI-led platforms are more likely to act as incremental demand channels rather than pose a disintermediation risk to established players. To stay competitive, Indian platforms are already integrating AI across consumer-facing interfaces as well as backend operations. Bernstein remains constructive on the broader Indian e-commerce space, citing strong fundamentals. It views the segment as relatively insulated from AI disruption, although investors may need to brace for narrative-driven volatility over the next few quarters. Analyst sentiment remains largely positive. Of the 33 analysts tracking Eternal, 30 have a 'Buy' rating, while three recommend 'Sell'. Swiggy has coverage from 28 analysts, of whom 23 rate it a 'Buy', three suggest 'Hold', and two recommend 'Sell'. Eternal shares ended 5.07% lower at ₹254.40 on Tuesday, while Swiggy declined 2.09% to close at ₹314.40. Swiggy is down 20% so far this year, whereas Eternal has gained 13% in 2026 to date.