Instacart price target raised to $60 from $55 at Bernstein

Bernstein raised the firm’s price target on Instacart (CART) to $60 from $55 and keeps an Outperform rating on the shares. The firm remains constructive at the current valuation, with upside to Street EBITDA forecasts. Q3 GTV guidance is key as Instacart laps a bigger contribution from Restaurants – maintaining the GTV framework would likely suffice. While Bernstein does model modest deceleration, Street expectations are still achievable as Restaurants scales further. Fixed cost leverage and advertising led take rate improvement should drive margin expansion – and continued improvement on order costs would be additive to the firm’s model. Bernstein tweaks ad revenue expectations higher on more stable macro and offsite growth.