Instacart initiated with an Overweight at Barclays

Barclays analyst Ross Sandler initiated coverage of Instacart with an Overweight rating and $40 price target. With a fair amount of investor skepticism around the story, the analyst likes the stock’s risk/reward. Instacart should continue to lead in what is proving to be one of the toughest categories in e-commerce, with advertising “as a nice differentiator,” the analyst tells investors in a research note. The firm says grocery is one of the last major categories to shift online, and as the space becomes more penetrated with more consumers adopting delivery, Instacart should benefit given its strong leadership position.