Jefferies Upgrades Instacart (CART) to Buy

Jefferies analyst John Colantuoni upgraded Instacart (NASDAQ: CART) from Hold to Buy with a price target of $45.00 (from $38.00).

The analyst comments: "We see DD GTV growth combining w/ efficiency gains & steady repurchases for 5+ yrs of at least mid-teens EPS growth. Despite this attractive algo, CART’s GAAP P/E sits near an all-time low & 25% below Internet, implying a 35% discount after adjusting for growth. We struggle to reconcile valuation w/ CART's recent acceleration in GTV, which reached a 3-yr high of 14% y/y at 4Q25 despite lapping material tailwinds from Uber Eats. The acceleration suggests increased contributions from enterprise, partnerships, and improved customer experience. We also see tailwinds from KR's fulfillment exit and CART's international expansion, which should sustain momentum as CART laps the introduction of a $10 free-delivery threshold. We raise our ests above cons to reflect durable top-line and upgrade to Buy w/ a $45 PT (15x '27E GAAP P/E), which implies valuation 20% below Internet despite CART's faster EPS growth (20% 3-yr vs. 17% avg) to account for headline risk created by AMZN's expanded grocery efforts."

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 $35.72 yesterday.

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