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Strategic Merger Potential and Growth Trends Drive Buy Rating for Grab

Strategic Merger Potential and Growth Trends Drive Buy Rating for Grab

Divya Gangahar, an analyst from Morgan Stanley, maintained the Buy rating on Grab (GRABResearch Report). The associated price target remains the same with $5.65.

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Divya Gangahar’s rating is based on the strategic potential of a merger between Grab and GoTo, which could significantly enhance profitability and returns for both companies. Despite the current lack of discussions, the possibility of a future merger remains, which could improve the competitive landscape in Indonesia, the largest ODS market in ASEAN.
Additionally, Grab has shown positive growth trends, with sequential ODS GMV growth acceleration and a strong balance sheet, boasting net cash and short-term investments of US$5.6 billion as of the first quarter of 2025. The company’s recent performance in the Indonesian market, gaining market share and benefiting from a more rational competitive environment, supports the Buy rating as it indicates potential for continued profitability improvements.

According to TipRanks, Gangahar is a 5-star analyst with an average return of 42.3% and an 84.21% success rate.

In another report released on May 29, Citi also reiterated a Buy rating on the stock with a $6.20 price target.

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