Stifel Nicolaus analyst Mark Kelley maintained a Buy rating on Maplebear today and set a price target of $56.00.
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Mark Kelley’s rating is based on a combination of factors that suggest the recent market reaction to Maplebear’s stock is excessive. Despite Amazon’s competitive moves, such as offering free grocery delivery to Prime members, Kelley believes Instacart remains competitive due to its extensive network of over 1,800 retailers across more than 100,000 locations, which surpasses Amazon’s grocery partner network. Additionally, the partnership between Amazon and Winn Dixie in Florida is seen as a minimal threat since Winn Dixie did not have a prior partnership with Instacart in that region.
Furthermore, while the enforcement of NYC’s minimum wage for grocery delivery workers is expected to impact Instacart’s revenue, Kelley anticipates that the company will find ways to mitigate these costs over time. The valuation of Maplebear’s stock is also attractive, trading at a lower multiple compared to its peers, which supports a revised target price of $56, indicating a potential upside of approximately 30%. These factors collectively contribute to the Buy rating for Maplebear’s stock.
In another report released on September 22, Bernstein also maintained a Buy rating on the stock with a $63.00 price target.