JPMorgan upgrades Grab to Overweight as it sees earnings upside

Investing.com -- JPMorgan upgraded Grab Holdings (NASDAQ: GRAB) to "Overweight," saying its 2025 adjusted EBITDA guidance could be conservative and that earnings delivery through the year may drive positive revisions.

Grab shares fell 10% on Feb. 20 after its FY25 outlook disappointed buy-side expectations. However, JPMorgan noted the company has historically outperformed its initial guidance, citing 2024 adjusted EBITDA of $313 million versus a $180-200 million forecast at the start of the year.

The firm highlighted Grab’s 5% quarter-on-quarter growth in monthly transacting users (MTUs) and sees further expansion through affordable and premium mobility offerings, lower delivery costs, and dine-out products.

Advertising revenue growth, increasing delivery margins, and market share consolidation could further boost profitability. JPMorgan maintained its Dec-25 price target at $5.60.

You May Also Be Interested In

• XPeng stock falls on Q2 results miss; robotics arm raises $900 mln
• X Financial (XYF) Tops Q2 EPS by 438c
• flyExclusive names Brian P. Reid as chief commercial officer