Wedbush analyst Scott Devitt downgraded Instacart (CART) to Underperform from Neutral with a price target of $42, down from $55, arguing that Amazon’s (AMZN) expansion of its same-day perishable grocery delivery service has intensified competition. The firm, which believes that consumers will opt for value-driven services, says Instacart management must navigate this new dynamic to protect market share, which ultimately it sees eroding over time as Amazon and others compete more closely. The firm thinks Prime has become “even more compelling” for grocery shoppers, diminishing the appeal of Instacart, the analyst added.
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