In a report released today, Bernie McTernan from Needham reiterated a Buy rating on Maplebear (CART – Research Report), with a price target of $56.00.
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Bernie McTernan has given his Buy rating due to a combination of factors, primarily focusing on the potential for growth in Maplebear’s order volume. Despite a slight reduction in revenue estimates due to lower-than-expected margins, the company has shown promising signs of exceeding gross transaction value (GTV) expectations, which supports a positive outlook.
McTernan anticipates that the acceleration in order growth will continue into the first half of 2025, although he notes that the necessary investments to achieve this growth may attract more scrutiny from investors. Nevertheless, he believes that the increase in GTV could lead to margin expansion and potentially reignite growth in advertising, justifying the inclusion of CART on the Needham Conviction List.
In another report released today, Citi also reiterated a Buy rating on the stock with a $55.00 price target.