Loop ups Instacart price target, says merger with Uber ‘more likely than not’

Loop Capital raised the firm’s price target on Instacart (CART) to $58 from $52 and keeps a Buy rating on the shares to reflect higher GTV growth, higher advertising contribution and higher margin based on results and guidance. While the firm says its bullish view on the stock is based “purely on Instacart’s opportunity as a stand-alone company,” Loop adds that it sees “many reasons” why a merger into Uber (UBER) would make sense, including price, as well as a few reasons why it would not, especially as the founder’s successor is moving onto a bigger opportunity at OpenAI. The firm thinks that an eventual combination of Instacart and Uber “is more likely than not,” the analyst tells investors.