Instacart initiated with a Neutral at BTIG

BTIG analyst Jake Fuller initiated coverage of Instacart (CART) with a Neutral rating and no price target. The company’s valuation is fair relative to its “modest” growth prospects and challenging competitive dynamics with the likes of Doordash (DASH) and Uber (UBER) extending into the category, the analyst tells investors in a research note. The firm says Instacart faces a challenging relative sales outlook, but that its profit profile is “healthy” with gross margin at 76%, contribution margin greater than 50% and EBITDA margin in the high-teens this year. “There are certainly positives here, but valuation appears fair relative to the modest growth profile,” writes BTIG.