In a report released today, Divya Gangahar from Morgan Stanley maintained a Buy rating on Grab (GRAB – Research Report), with a price target of $5.65.
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Divya Gangahar’s rating is based on Grab’s strong market position and innovative strategies. Grab holds a dominant share in Singapore’s ride-hailing and food delivery sectors, capturing 60-65% of the market. This leadership is supported by its superapp model, which significantly enhances user engagement and customer lifetime value compared to its competitors.
Furthermore, Grab’s proactive adoption of AI technologies is a key factor in its anticipated growth. The company has integrated over 1,000 AI models across its platform, which are expected to drive efficient and profitable growth. Additionally, Grab’s strategic initiatives in autonomous vehicles and its robust financial projections, including a projected EBITDA growth of over 50% annually from 2024 to 2027, underpin the Buy rating. The stock’s valuation is competitive, trading at a multiple in line with peers like Uber, further supporting the positive outlook.
According to TipRanks, Gangahar is ranked #1099 out of 9647 analysts.