Sachin Salgaonkar, an analyst from Bank of America Securities, maintained the Hold rating on Grab. The associated price target remains the same with $6.50.
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Sachin Salgaonkar’s rating is based on a combination of factors including Grab’s strong performance in the third quarter, driven by robust growth in gross merchandise value (GMV) and stable to improving EBITDA margins. The company has shown resilience despite external challenges, such as protests in Indonesia, and has managed to maintain its business momentum. Additionally, Grab’s financial services are showing signs of improvement, with a reduction in EBITDA losses.
Furthermore, there is potential for an upward revision in Grab’s full-year guidance on revenue and EBITDA, given the strong third-quarter results. The company is also exploring new opportunities in autonomous driving and quick-commerce, which could provide future growth avenues. However, despite these positive aspects, the recommendation remains a Hold due to balanced risk-reward considerations, with competition in the market remaining stable and potential catalysts like a buyback program announcement yet to materialize.