Meesho shares can rally to Rs 240? Why Motilal Oswal initiated coverage on the platform stock

Motilal Oswal has begun coverage on Meesho, awarding it a buy rating along with a target price indicating strong potential. The brokerage believes that free cash flow will start manifesting from FY27, highlighting Meesho's asset-light model as a crucial factor for growth. The company's recent Q1 performance showed reduced losses and increased marketplace revenue, emphasizing its sensitivity to NMV growth and margin improvements.