Bernstein upgrades Delhivery to 'outperform' amid positive outlook and earnings rebound

Leading brokerage firm Bernstein in its latest analyst report has upgraded Delhivery, the Indian logistics company, to an ‘outperform’ rating. The upgrade comes as Bernstein expresses a positive outlook on the midcap and smallcap sector, with Delhivery specifically showcasing promising signs of bottoming out in terms of earnings and positive operating cashflow in the near term.

This upgrade marks a significant milestone for Delhivery after a prolonged period of stock gains, as the company has witnessed an impressive surge of more than 10 percent over the past month.

Bernstein's decision to upgrade Delhivery is primarily driven by the brokerage firm's favorable assessment of the company's earnings trajectory and operating cashflow in the coming months. Delhivery has shown resilience in the face of challenging market conditions, leading Bernstein to believe that the company is on the path to recovery. This positive outlook has prompted Bernstein to raise its estimates for Delhivery's EBITDA (earnings before interest, taxes, depreciation, and amortization) for the fiscal years 2024 and 2025 by an impressive 25-59 percent.

The upgrade from Bernstein holds significant weight as it acknowledges the company's efforts to enhance its financial performance and strategic positioning. Delhivery has been working diligently to strengthen its foothold in the logistics industry, and the upgrade serves as a testament to the progress made. Investors and shareholders can take confidence in the fact that an esteemed institution like Bernstein has recognized Delhivery's potential for future growth and profitability.

Delhivery's stock has been gaining momentum recently, culminating in a notable 10 percent increase over the past month. This rise in stock price indicates a growing interest from investors and reflects the positive sentiment surrounding Delhivery's future prospects. The upgraded rating from Bernstein is expected to provide further impetus to Delhivery's stock performance, attracting increased attention from both institutional and retail investors.