Morgan Stanley analyst Brian Nowak lowered the firm’s price target on Instacart to $41 from $45 and keeps an Equal Weight rating on the shares. The firm updated its model for Q2 EPS and incorporated a slower forward ad ramp, which it is now more cautious on given Q3 guidance for advertising revenue growth in line with GTV. The company’s efforts to diversify towards smaller advertisers is taking time to drive a step-change in auction density and ad growth, the analyst tells investors.
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