Instacart initiated with a Buy at Citi

Citi analyst Ronald Josey initiated coverage of Instacart with a Buy rating and $34 price target. The analyst says improving order efficiencies, growth of its higher-margin advertising business, and the launch of new ad products should lead to margin expansion for Instacart. The company’s growth is slowing, but its ramping acquisition and incentive spend, long-term partner network and 600,000 shoppers should deliver accelerating growth, the analyst tells investors in a research note.