BMO lifts Instacart to Outperform, sees 'attractive valuation'

Investing.com -- BMO Capital Markets upgraded Instacart parent Maplebear Inc. (NASDAQ: CART) to Outperform in a note on Tuesday, highlighting consistent operational execution, upside potential, and discounted valuation.

The firm maintained its $58 price target, implying about a 55% potential total return.

“Solid 3Q25 results: 1% ahead of Street, with GTV +10% YoY, driven by 14% YoY growth in orders,” BMO analyst Brian Pitz wrote.

Adjusted EBITDA of $278 million came in 4% above expectations, with margins improving “300bps YoY as % of revenue and 30bps YoY as % of GTV.”

BMO believes management’s guidance for the fourth quarter, GTV of $9.45 billion to $9.6 billion and adjusted EBITDA of $285 million to $295 million, is “relatively conservative.”

Pitz stated that Instacart’s core grocery marketplace is “healthy and continuing to grow,” supported by a loyal customer base with “increasing order frequency and improving retention.”

It also highlighted the company’s enterprise platform as “an underappreciated strategic growth lever” with a long runway for international expansion through fulfillment services, in-store technology, and AI solutions.

Advertising remains a key strength, generating “over $1 billion in annualized revenue,” with its retail media network offering “a unified, closed-loop ecosystem spanning the Instacart marketplace, over 240 Carrot Ads partner sites, in-store Caper Carts, and off-platform partners.”

BMO noted that Instacart’s valuation “trades at ~7.4x EV/EBITDA and ~17.1x P/E, a discount to historical averages,” despite being “the best-in-class grocery delivery player.”

The analyst also pointed to a “$1.5B increase” in share buybacks as further support for the stock, underscoring confidence in the company’s long-term fundamentals.

You May Also Be Interested In

• Corning (GLW) files for up to $2B offering of common shares
• EagleOne Metals closes $225,199 non-brokered private placement
• GMR Solutions to reprice $2.9B term loan, pay down $200M in debt