CGS-CIMB analyst downgraded the rating on Grab to a Hold yesterday, setting a price target of $5.20.
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CGS-CIMB has given its Hold rating due to a combination of factors influencing Grab’s financial outlook. The firm anticipates a slight decline in adjusted EBITDA for the second quarter of 2025, primarily due to increased regional corporate costs. Additionally, the expected slower growth in EBITDA for the second half of 2025, particularly in the Deliveries segment, is attributed to weaker consumer spending.
Despite strong growth in gross merchandise value (GMV), CGS-CIMB believes that the current share price already reflects management’s guidance for robust GMV growth for the fiscal year 2025. The firm identifies potential upside catalysts such as stringent cost optimization, increased advertising revenue, and profitability in Grab’s financial services segment. However, they also note downside risks, including potential credit losses and higher-than-expected corporate costs, which contribute to the Hold rating.
GRAB’s price has also changed slightly for the past six months – from $4.490 to $4.920, which is a 9.58% increase.