Morgan Stanley analyst Divya Gangahar maintained a Buy rating on Grab today and set a price target of $6.95.
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Divya Gangahar has given his Buy rating due to a combination of factors that highlight Grab’s strategic positioning and growth potential. The potential merger or acquisition discussions between Grab and GoTo, as reported in Indonesia, could significantly enhance Grab’s market presence and operational efficiency in the region. This strategic move aligns with the Indonesian government’s efforts to balance the interests of driver-partners and ride-hailing platforms, which could lead to more sustainable operations.
Moreover, Indonesia’s contribution to Grab’s revenue is substantial, accounting for 23% by 2025, indicating the importance of this market. Grab’s issuance of convertible senior notes suggests a focus on maintaining strategic flexibility, potentially for acquisitions, which could further strengthen its market position. The company’s organic growth in Indonesia, with a significant increase in On-Demand Services GMV, also supports the Buy rating, as it demonstrates Grab’s ability to capture market share effectively.
In another report released on November 4, DBS also maintained a Buy rating on the stock with a $7.55 price target.