Morgan Stanley analyst Divya Gangahar has maintained their bullish stance on GRAB stock, giving a Buy rating today.
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Divya Gangahar’s rating is based on several positive indicators within Grab’s recent performance and future projections. One significant factor is Grab’s substantial revenue growth of 17% year-over-year, reaching $764 million, which aligns with Morgan Stanley’s expectations. Additionally, Grab’s Gross Merchandise Value (GMV) has shown robust growth in both Deliveries and Mobility segments, enhancing their market presence.
Another reason for the Buy rating is Grab’s active share buyback initiative, repurchasing 67 million shares, which is part of a significant $500 million program, indicating strong capital management. Furthermore, despite the slightly lower-than-expected adjusted EBITDA in the fourth quarter, Divya notes that Grab has a history of conservative guidance, often outperforming expectations, which suggests potential upside in the future. Overall, these elements contribute to a positive outlook for Grab, supporting the Buy recommendation.
According to TipRanks, Gangahar is a 4-star analyst with an average return of 28.0% and a 66.67% success rate.
In another report released today, Barclays also reiterated a Buy rating on the stock with a $6.50 price target.