Instacart initiated with a Peer Perform at Wolfe Research

Wolfe Research analyst Shweta Khajuria initiated coverage of Instacart with a Peer Perform rating and no price target as part of a broader sector note launching coverage of Global Internet names. The company is well-positioned to generate healthy topline growth driven by secular tailwinds, high-margin advertising revenue, product innovation, and potential international expansion while operating with attractive unit economics and improving margins, the analyst tells investors in a research note. Wolfe adds however that Instacart’s ability to generate accelerating Gross Transaction Value growth that exceeds industry growth in the low-double-digit range remains uncertain.