Instacart initiated with an Outperform at Baird

Baird initiated coverage of Instacart with an Outperform rating and $31 price target. Instacart is the leading online marketplace in the “notoriously difficult” online grocery market, the analyst tells investors in a research note. The firm says Instacart “enjoys an enviable combination” of scale, retail integrations, vertical expertise, and proprietary technology. Moreover, the company is already benefiting from a well-developed and lucrative retail media segment, with a long-term opportunity in enterprise services and data technology that represents a potential “third leg to the stool,” says Baird.