Bernstein upgrades Instacart on favorable view after Q4 report

Bernstein upgraded Instacart to Outperform from Market Perform with a price target of $43, up from $30. The firm left the company’s Q4 earnings report with a more favorable view of the stock as it sees room for Instacart’s gross transaction value growth to exceed consensus expectations. Instacart is lapping the impact of the electronic benefit transfer headwinds and the drag from its COVID cohorts is abating, the analyst tells investors in research note. Bernstein thinks the company’s Q2 or Q3 guidance can be the catalyst to drive positive estimate revisions. With the shares trading at 10-times adjusted EBITDA, this should be enough to for the stock to re-rate higher, the firm contends.