BMO upgrades Instacart to Outperform citing attractive valuation

BMO Capital upgraded Instacart (CART) to Outperform from Market Perform with an unchanged price target of $58. The company reported “solid” Q3 results and trades at an attractive valuation, the analyst tells investors in a research note. The firm views Instacart’s guidance, which it says came in slightly above consensus estimates at the midpoint, as “relatively conservative.” Instacart is trading at a discount to its historical valuation levels, which creates an attractive risk/reward ratio, contends BMO. It believes the company’s core grocery marketplace “remains healthy and continues to grow.”