Maplebear (CART) has received a new Hold rating, initiated by Mizuho Securities analyst, Kevin Wang.
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Kevin Wang has given his Hold rating due to a combination of factors, including the intensifying competition in the grocery delivery market. Despite Maplebear’s strong strategic initiatives, such as its partnership with Uber and the $10 free shipping offer, the company faces significant challenges from major players like Amazon and DoorDash, who are aggressively expanding their grocery services.
Maplebear has established a solid position in the grocery delivery sector, with strong relationships with grocers and consumers, and a notable share in large-basket grocery and advertising. However, the increasing focus on grocery delivery by both gig economy competitors and first-party players like Amazon and Walmart poses a threat. Additionally, while Maplebear has achieved a high advertising yield, growth in this area has slowed, and competition in retail media is intensifying. These factors contribute to the cautious stance, with a preference for waiting for better entry points or more evidence of the company’s ability to fend off rivals.