Instacart (NASDAQ: CART) has been in a downtrend ever since it debuted on Nasdaq but a Wolfe Research analyst is confident the stock will rebound in 2024.
Instacart stock could rally back to $35Deepak Mathivanan upgraded the grocery delivery company this morning to “outperform” and said its shares could climb all the way back to $35.
His price objective suggests a near 50% upside from here. The analyst is super bullish because he sees an attractive risk-reward in Instacart stock.
We do not believe CART is a broken business as the current value at 6x FY2 EBITDA implies. We believe Instacart has many levers to improve monetisation and grow EBITDA MT.
Instacart expects its adjusted EBITDA to fall between $165 million and $175 million in its current financial quarter.
Watch here: https://www.youtube.com/embed/Ib3LpEdyejE?feature=oembedWhy may Uber choose to merge with Instacart?Deepak Mathivanan also told clients in his research note today that Uber Technologies Inc (NYSE: UBER) could explore a merger with Instacart as its “current asset value is too cheap”.
He’s convinced that the regulatory risks – should the two companies decide to come together – would be minimal while financial synergies in terms of costs and revenues would be significant.
Instacart has been struggling to improve GTV (gross transaction value) in recent months. The Nasdaq-listed firm may consider a merger with Uber as such an agreement would help it overcome the competitive risks as well, the Wolfe Research analyst added.
His bullish call arrives only days after Instacart raised fees in Seattle following a new minimum pay law.
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