Stock Market News

Grab Holdings – ‘Time to Board the Superapp,’ Says Bernstein Analyst in Upgrade

2022.05.31 22:51

Grab Holdings - 'Time to Board the Superapp,' Says Bernstein Analyst in Upgrade
Grab Holdings – ‘Time to Board the Superapp,’ Says Bernstein Analyst in Upgrade

By Sam Boughedda

Grab Holdings Ltd (NASDAQ:GRAB) shares rose over 4% Tuesday after it was upgraded to Outperform from Market Perform by Bernstein analyst Venugopal Garre.

Grab is the developer of the Grab Superapp, which provides transportation, food delivery, and digital payments services.

The analyst, who cut the firm’s price target on the stock to $3.04 from $3.52, told investors in a note that it is “time to board the superapp.”

Garre said that despite the stock’s 18% decline over the past month, they see an attractive risk-reward with the company being a beneficiary of the post-pandemic re-opening.

“Our upgrade primarily reflects the favorable risk-reward, improving momentum in Ride-hailing, which will offset a moderation in food and the potential long-term value from Fintech and Grocery,” wrote the analyst.

“We expect a peaking of incentives in 1H and gradual improvements post that as driver supply slowly improves. A relatively benign competitive environment as competitors focus on profitability is additional support,” he added.

While acknowledging the challenges of food delivery moderating following the post-pandemic re-opening, the lack of a supportive base, already high penetration, and competitive intensity, the analyst believes with Singapore, Indonesia, and the Philippines easing travel restrictions in March, Malaysia in April, and Thailand in Ma, Grab will benefit in the near term.

“Ride-hailing will benefit from the reopening, and the scale-up can be non-linear as demand for mobility normalizes and costs reduce with an increase in driver supply. Near term, while driver supply and fuel challenges remain, we see this reflected in valuations,” wrote Garre.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 81,585.86 2.22%
ethereum
Ethereum (ETH) $ 1,878.90 1.91%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.23 4.59%
bnb
BNB (BNB) $ 630.90 0.62%
solana
Solana (SOL) $ 122.96 3.48%
usd-coin
USDC (USDC) $ 1.00 0.01%
cardano
Cardano (ADA) $ 0.685864 4.84%
dogecoin
Dogecoin (DOGE) $ 0.163786 4.85%
tron
TRON (TRX) $ 0.22363 2.24%
staked-ether
Lido Staked Ether (STETH) $ 1,878.16 1.90%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 81,473.83 2.24%
leo-token
LEO Token (LEO) $ 9.69 1.28%
the-open-network
Toncoin (TON) $ 3.59 3.88%
chainlink
Chainlink (LINK) $ 13.53 1.42%
usds
USDS (USDS) $ 1.00 0.01%
stellar
Stellar (XLM) $ 0.265687 2.49%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,247.34 2.08%
pi-network
Pi Network (PI) $ 1.15 13.81%
hedera-hashgraph
Hedera (HBAR) $ 0.183007 4.28%
avalanche-2
Avalanche (AVAX) $ 18.40 0.45%
shiba-inu
Shiba Inu (SHIB) $ 0.000012 5.09%
sui
Sui (SUI) $ 2.25 2.38%
mantra-dao
MANTRA (OM) $ 6.87 0.82%
litecoin
Litecoin (LTC) $ 88.19 5.28%
bitcoin-cash
Bitcoin Cash (BCH) $ 330.56 2.18%
polkadot
Polkadot (DOT) $ 4.26 2.22%
bitget-token
Bitget Token (BGB) $ 4.56 3.22%
ethena-usde
Ethena USDe (USDE) $ 0.99973 0.04%
weth
WETH (WETH) $ 1,878.08 1.94%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.14%
hyperliquid
Hyperliquid (HYPE) $ 13.22 2.82%
whitebit
WhiteBIT Coin (WBT) $ 28.14 0.98%
wrapped-eeth
Wrapped eETH (WEETH) $ 1,994.92 2.01%
monero
Monero (XMR) $ 206.32 2.58%
uniswap
Uniswap (UNI) $ 6.12 1.71%
susds
sUSDS (SUSDS) $ 1.04 0.07%
dai
Dai (DAI) $ 0.99992 0.03%
aptos
Aptos (APT) $ 5.27 1.67%
near
NEAR Protocol (NEAR) $ 2.53 1.97%
okb
OKB (OKB) $ 50.04 0.18%
pepe
Pepe (PEPE) $ 0.000007 4.75%
mantle
Mantle (MNT) $ 0.806766 3.24%
internet-computer
Internet Computer (ICP) $ 5.62 4.07%
gatechain-token
Gate (GT) $ 21.65 0.89%
tokenize-xchange
Tokenize Xchange (TKX) $ 32.75 1.03%
ethereum-classic
Ethereum Classic (ETC) $ 17.29 3.32%
ondo-finance
Ondo (ONDO) $ 0.810473 5.69%
aave
Aave (AAVE) $ 166.08 3.01%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 81,609.87 2.23%