Grab (GRAB) has received a new Buy rating, initiated by Phillip Securities analyst, Helena Wang.
Helena Wang’s rating is based on several compelling factors that highlight Grab’s strong market position and growth potential. Grab’s extensive ecosystem in Southeast Asia, offering services like ride-hailing, food delivery, and digital financial solutions, positions it well to capitalize on increasing urbanization and digital adoption trends. This has driven significant revenue growth, particularly in the On-Demand segment, which saw a 16% year-over-year increase in Gross Merchandise Value.
Additionally, Grab’s financial services are expanding rapidly, with a 64% year-over-year surge in its loan portfolio and a narrowing of adjusted EBITDA losses. The company’s financial health is further supported by a robust net cash position, which management plans to use for organic growth initiatives. These factors, combined with a positive cash flow and strategic investments in technology and electric vehicles, underpin Helena Wang’s Buy rating for Grab, with a price target of US$5.80.
According to TipRanks, Wang is ranked #4555 out of 9317 analysts.
In another report released on April 2, Morgan Stanley also maintained a Buy rating on the stock with a $5.70 price target.