UPDATE: Goldman Sachs Starts Grab Holdings Inc. (GRAB) at Buy

January 27, 2022 4:16 PM EST
Get Alerts GRAB Hot Sheet
Price: $3.21 +2.23%

Rating Summary:
    7 Buy, 2 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 4 | Down: 15 | New: 18
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(Updated - January 27, 2022 4:22 PM EST)

Goldman Sachs analyst Pang Vittayaamunaykoon initiates coverage on Grab Holdings Inc. (NASDAQ: GRAB) with a Buy rating and a price target of $7.90.

The analyst comments "We see Grab as the beneficiary of the growing Southeast Asia internet economy, where increased urbanization, rising mobile/internet penetration, digitization of services and consumption, and a large under-banked population form a US$160bn TAM. We forecast an adjusted revenue CAGR of 32% over 2021-25E. By segment, we expect mobility and financial services to grow faster, at an adjusted revenue CAGR of 45%/40% respectively, benefiting from the economy reopening in 2022. We initiate coverage at Buy with a 12m SOTP-based TP of US$7.9 which implies 36% upside. Our bull-bear scenarios suggest 114% upside and 42% downside. Grab is Southeast Asia's leading super-app that provides hyper-local services across deliveries, mobility and digital financial services. Grab's 25mn customers, 5mn driver-partners and 2mn merchant-partners together form a flywheel which can achieve higher engagement and greater synergy. We are positive on Grab's outlook given 1) An attractive play into the high-growth areas of mobility, delivery, and payments. 2) Proven track record with its super-app across a diverse regional footprint; 3) Mobility is profitable, generating EBITDA margin of c.60% (2021E) despite the economic slowdown during the pandemic, which enables Grab to invest through the cycle; 4) Experienced founder-led management team supported by key strategic shareholders."

For an analyst ratings summary and ratings history on Grab Holdings Inc. click here. For more ratings news on Grab Holdings Inc. click here.

Shares of Grab Holdings Inc. closed at $5.94 yesterday.


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