Miguel Vidal/iStock Editorial via Getty Images Grab Holdings (NASDAQ:GRAB) was upgraded to Buy on Tuesday as Bank of America sees a more favorable risk/reward dynamic into 2023. Equity analyst Sachin Sagoankar advised that the company is due to benefit from “strong growth tailwinds” in its mobility, grocery, and food delivery segments across Southeast Asia. In particular, delivery and mobility growth as well as improvements in profitability undergird the bullish thesis. “For mobility, in 2023 we expect the driver supply issue to be resolved. We also expect Grab to reduce its overall pricing to ensure no negative elasticity impact on consumer demand,” Sagaonkar told clients. “In delivery, we expect Grab to scale up in grocery and quick commerce to benefit from increasing demand there and offset any slowdown in food. We don’t expect a higher cash burn as the focus appears to be on mid-to-high end users.” He raised his price target on the stock to $4.20 from a prior $3.60 alongside the upgrade to Buy from Neutral. Grab shares rose 1.4% in premarket trading on Tuesday. Read more on the company’s hiring freeze announced in December.
Grab Holdings upgraded to as BofA eyes delivery growth (NASDAQ:GRAB)
by admin | Jan 17, 2023 | Stocks | 0 comments