Instacart (CART) PT Raised to $56 at Cantor Fitzgerald
Cantor Fitzgerald analyst Deepak Mathivanan raised the price target on Instacart (NASDAQ: CART) to $56.00 (from $45.00) while maintaining a Overweight rating.
The analyst comments "CART reported 3Q with GTV and EBITDA above Street estimates by 1% and 7%, respectively. Order growth of +10% y/y accelerated by 3-pts on a 1-pt tougher comp, driven by IC+ user growth and frequency. At a segment level, ad revenue growth was stable +11% y/y despite weakness from CPG brands, while transaction take rate expanded by 7-bps y/y. On the product front, CART made nice progress in expanding selection, improving affordability, and improving user experience during 3Q – all of which should enable the company sustain order growth over the next few quarters. The company’s 4Q24E GTV guide of 8-10% y/y and EBITDA of $230-240m should inspire confidence on capability to achieve stable growth + margin expansion. CART shares traded up 50% intra-quarter in 3Q (vs. Nasdaq +19%), but the lack of a bigger upside on KPIs could disappoint some investors. However, we came away feeling incrementally confident on our bull thesis on CART. At 11x FY25E EBITDA, we also find the valuation highly attractive. We reiterate our Overweight rating, and revise our PT to $56, which is based on 13x FY25E EBITDA (vs. $45 and 12x previously)."