JPMorgan has initiated coverage on Meesho, assigning an 'Overweight' rating with a price target of ₹215, suggesting a 13.5% upside from its current price of ₹189.4. Following the announcement, Meesho's shares surged by 12%. The brokerage anticipates Meesho's net merchandise value (NMV) to grow at a 23% compound annual growth rate (CAGR) from FY26 to FY31, driven by increased platform usage and improved transaction frequency. Additionally, advertising is identified as a crucial area for growth, as Meesho's current ad take-rate of 1.8% lags behind global peers. Despite potential risks, including competition and logistics costs, JPMorgan remains optimistic about Meesho's financial outlook, predicting a recovery in free cash flow ahead of earnings before interest, tax, depreciation, and amortization (EBITDA).