CGS-CIMB analyst reiterated a Buy rating on Grab today and set a price target of $7.20.
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CGS-CIMB has given his Buy rating due to a combination of factors related to Grab’s earnings visibility and strategic positioning. The firm acknowledges the potential impact from a possible 10% cap on ride-hailing commissions in Indonesia, estimating a mid‑single to low‑double‑digit downside to FY26 EBITDA under its assumptions. However, CGS-CIMB believes Grab can mitigate a meaningful portion of this pressure through pricing adjustments, platform fees and other monetisation tools, while continued operational scale supports its profitability trajectory.
CGS-CIMB ‘s rating is based on its expectation that Grab will deliver positive adjusted EBITDA across all business segments by FY27, underpinned by narrowing losses in financial services and improving group margins. The broker notes that 4Q25 adjusted EBITDA is likely to remain robust year-on-year despite temporarily softer margins from higher incentives used to capture festive-season demand. It also highlights several potential re-rating drivers, including stronger-than-expected cost discipline, further uptake of Grab’s higher-margin advertising business and a faster path to break-even in financial services, while flagging credit losses and regional corporate costs as key risks. Overall, CGS-CIMB maintains its US$7.20 target price and views the current risk–reward as attractive, justifying its Buy recommendation.
In another report released today, Bank of America Securities also upgraded the stock to a Buy with a $6.30 price target.