Gordon Haskett upgrades Instacart on selloff, positive order data

Gordon Haskett analyst Robert Mollins upgraded Instacart to Buy from Hold with a price target of $45, up from $37. With the Instacart down 20% since Instacart reported earnings and flat relative to the $30 initial public offering price set back in September, “now is an opportune entry point to buy the shares,” the analyst tells investors in a research note. The firm thinks the combination of the shares declining significantly more than peers and the broader market since Q1 earnings despite “solid upward revisions” to 2024 and 2025 EBITDA estimates, and its data science work pointing to the company’s Q2 orders pacing ahead of consensus, creates a “favorable risk/reward dynamic that warrants taking advantage of.” Gordon is also encouraged to see Instacart’s digital engagement growth continue to outpace grocer foot and web traffic.