Needham comments on Instacart (CART) chatter

Needham analyst Bernie McTernan reiterated a Buy rating and $63.00 price target on Instacart (NASDAQ: CART).

The analyst comments "Press reports indicate that DASH is in advanced talked to acquire CART for $17B. This acquisition would be consistent with the theme of consolidation in the global delivery industry. But, different from recent deals that focused on geographic expansion, this deal would represent consolidation of the US grocery delivery market. Therefore, we think there should be greater focus on cost and operational synergies, including batching and combining the two respective advertising businesses. If the deal comes to fruition, we will be most interested to hear the answer to "why now?", as DASH has historically taken their stance of being able to grow their grocery delivery business organically. Additionally, we are intrigued on the potential to accelerate CART's international ambitions."

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 $60.88 yesterday.

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