Instacart price target raised to $40 from $28 at Morgan Stanley

Morgan Stanley analyst Brian Nowak raised the firm’s price target on Instacart to $40 from $28 and keeps an Equal Weight rating on the shares. The firm, which is updating its Instacart model for 4Q earnings and what it calls a “reasonable range” of growth and profitability from here, notes that the high end of Instacart’s Q1 GTV guidance was 4% ahead of the firm’s prior estimates and implies four straight quarters of accelerating GTV growth. The firm’s higher GTV estimates flow through to a 6% higher FY25 revenue forecast, the analyst noted.