Bank of America Securities analyst Justin Post reiterated a Hold rating on Maplebear today and set a price target of $58.00.
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Justin Post has given his Hold rating due to a combination of factors including Maplebear’s solid financial performance and competitive positioning. The company’s Gross Transaction Volume (GTV) and revenue exceeded market expectations, with a notable increase in order frequency driving growth. However, despite these positive indicators, the growth rate of Maplebear’s GTV is lagging behind its peers like DoorDash and Uber Delivery, which raises concerns about its competitive edge.
Additionally, while the company’s EBITDA margins have shown improvement, the overall growth gap compared to faster-growing competitors in the sector remains a concern. Justin Post acknowledges the company’s strong execution and increased confidence in its platform, reflected in a raised price objective. Nonetheless, the preference for faster-growing companies in the industry leads to a Hold rating, as the potential for significant outperformance appears limited.
Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Alphabet Class C. According to TipRanks, Post has an average return of 23.8% and a 71.52% success rate on recommended stocks.
In another report released yesterday, Wells Fargo also reiterated a Hold rating on the stock with a $55.00 price target.