Instacart initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of Instacart with a Buy rating and $48 price target. The analyst believes the company’s gross transaction volume can reaccelerate and that its advertising investment rate reach a mid-single-digit percentage of gross transaction volume. Instacart’s advertising and other revenue will represent 4% of GTV in 2028, expanding from less than 3% in 2022, the analyst tells investors in a research note.