Citi analyst Alicia Yap reiterated a Buy rating and $5.50 price target on Grab Holdings Inc. (NASDAQ: GRAB) following the rejection of the company's proposed acquisition of a local delivery business in Taiwan.

Taiwanese regulators denied the acquisition after what Yap described as "extensive efforts to seek regulatory approval," blocking Grab's initial plan to expand across 21 cities in Taiwan.

Yap said any required breakup fee from the failed deal is expected to be largely offset by the elimination of planned integration expenses, which she said would "likely yield a modest positive impact on 2027E adjusted EBITDA, albeit with a minor one-off drag on 4Q26 net profit."

The analyst added that Grab's core operations across Southeast Asia "remain resilient and unaffected," and that the outcome allows the company to focus on its on-demand and fintech operations in the region.

Yap said she anticipates management will address capital reallocation and regional growth during the upcoming third-quarter 2026 earnings call.