Benchmark starts ‘market consolidator’ Grab Holdings with a Buy

As previously reported, Benchmark analyst Fawne Jiang initiated coverage of Grab Holdings with a Buy rating and $4 price target as part of the firm’s industry launch of Southeast Asia e-commerce stocks. The firm believes that digital economy growth in Southeast Asia will outperform global markets in the next three to five years and anticipates market consolidation as subscale players struggle to survive and ultimately exit. In that context, it views Grab as a significant market consolidator in the region given its "dominant market share" in mobility of about 70% and in food delivery at about 50%.