Loop sees partnership adding to speculation of Uber buying Instacart

Loop Capital keeps a Buy rating on Instacart (CART) with a $46 price target after the company and Uber (UBER) announced a partnership that will bring restaurant delivery from Uber Eats to Instacart customers. No financial terms were announced though Loop expects that Instacart would receive some small portion of the take on orders it funnels into Uber, the analyst tells investors in a research note. The firm does not think the news signals that Uber is any less interested in grocery delivery. The partnership looks to be an attempt by Uber to bolster its competitive position against DoorDash (DASH), contends Loop. The firm expects the partnership will raise speculation that Uber will eventually acquire Instacart. The potential for a combination has been a discussion among investors and trade rags since before the Instacart came public, according to Loop. It believes the strategic partnership would bring the two companies closer together and could provide Uber better visibility on potential synergies should a combination ultimately be pursued. Shares of Instacart are up 3% to $37.57 following the news.