Instacart (CART) Retains Core 'Sunday Shop' Business - Citizens

Citizens analyst Andrew Boone reiterated a Market Outperform rating and $60.00 price target on Instacart (NASDAQ: CART).

The analyst commented, "This afternoon, The Information reported that Amazon is testing ultrafast delivery which will include grocery and fast-moving consumer goods. This left Instacart's (CART, MO, $60 PT) stock down 4% in the aftermarket as competition from Amazon remains an investor concern. That said, we view Amazon's ultrafast delivery initiative as a test, and we note the challenge historically of reaching order density for dark stores, while Amazon has pushed its grocery initiatives in the past toward profitability through delivery fees. To be clear, we believe Amazon remains a serious competitor in grocery as it generated $100B+ of GMV in the last twelve months, while Everyday Essentials is growing at 2x the rate of the rest of Amazon's business; however, we believe the core "Sunday Shop" remains with Instacart, and we view any weakness as an additional buying opportunity for Instacart holders."

For an analyst ratings summary and ratings history on Instacart click here. For more ratings news on Instacart click here.

Shares of Instacart closed at $42.79 yesterday.

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