New Delhi, Sept. 8 -- Global brokerage house Nomura has turned bullish on India's online food delivery space. It has initiated coverage on Swiggy with a 'buy' rating and hiked its target price for Zomato's parent, Eternal.

The brokerage expects the duopoly of Swiggy and Zomato to remain the key cash generator in the sector, with both players benefiting from robust order growth, improving unit economics, and better Ebitda margins as scale expands.

Nomura set a target price of Rs.550 for Swiggy, implying a 25 percent upside from Friday's closing price. Eternal also received a 'buy' rating, with its target price raised to Rs.370 from Rs.300 earlier, indicating a potential upside of over 12 percent.

Nomura said the food delivery industry i...