Analyst Divya Gangahar of Morgan Stanley maintained a Buy rating on Grab, retaining the price target of $6.05.
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Divya Gangahar’s rating is based on Grab’s strategic initiatives that are expected to drive growth and profitability. The company has implemented a strategy to increase user growth and frequency by adjusting trip fares, which is anticipated to enhance market penetration and user retention. This approach is supported by a shift in incentives between partners and consumers, which is expected to maintain steady mobility margins.
Additionally, Grab’s advertising sector shows significant potential for growth, with a substantial portion of its merchant base yet to be tapped. The company has reported a notable increase in advertising spending, driven by high returns on ad spend and cost efficiencies. Furthermore, Grab’s fintech initiatives, including increased loan penetration and new product offerings, are contributing to its growth trajectory. These factors collectively underpin Divya Gangahar’s Buy rating for Grab’s stock.
According to TipRanks, Gangahar is a 4-star analyst with an average return of 30.5% and a 63.64% success rate.
In another report released today, Phillip Securities also maintained a Buy rating on the stock with a $5.80 price target.