Sachin Salgaonkar, an analyst from Bank of America Securities, reiterated the Hold rating on Grab (GRAB – Research Report). The associated price target was raised to $5.80.
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Sachin Salgaonkar’s rating is based on a combination of factors, including a slight miss in Grab’s fourth-quarter revenues compared to expectations, primarily due to increased partner and consumer incentives. The company’s adjusted EBITDA was below estimates, while its net income aligned with expectations. For 2025, Grab’s revenue and adjusted EBITDA guidance were slightly lower than consensus estimates, reflecting management’s conservative approach and accounting for seasonal uncertainties.
Despite steady quarter-over-quarter growth in Grab’s delivery and mobility segments, the slight dip in margins contributed to the Hold rating. The company’s focus on long-term growth, including advancements in AI and autonomous vehicle technology, and its cautious approach to potential acquisitions, present a balanced risk-reward scenario. Salgaonkar maintains a Neutral stance, with a price objective adjustment reflecting these considerations.
In another report released today, DBS also maintained a Hold rating on the stock with a $5.16 price target.