Procore stock price target raised to $90 from Goldman Sachs on stabilizing growth
Investing.com - Benchmark maintained its Buy rating and $67.00 price target on Instacart (NASDAQ:CART) ahead of the company’s third-quarter earnings report scheduled for Monday, November 10, before market open. With CART currently trading at $37.25, this target represents a 79.9% upside potential, significantly higher than the average analyst target suggesting 55% upside according to InvestingPro data.
The research firm’s third-quarter estimates for Gross Transaction Value (GTV) align with consensus, while its total revenue projection is approximately 1% above consensus expectations. Benchmark’s Transaction revenue estimate is 1% above consensus, with its Advertising/Other revenue forecast in line with market expectations.
According to data from Mercatus cited by Benchmark, U.S. e-commerce grocery sales growth accelerated by 5 percentage points on a two-year stack basis quarter-over-quarter, compared to a 3-point increase in the second quarter. September year-over-year sales growth showed particular strength, accelerating by 18 percentage points month-over-month on a two-year stack basis.
The broader industry’s third-quarter sales increased 18% sequentially, based on Mercatus data, while Instacart’s guidance suggests only a 0.8% sequential increase at the high end. This indicates Instacart captured a minimal amount of the incremental total addressable market growth during the quarter. For context, InvestingPro shows Instacart’s revenue grew 10.47% over the last twelve months, with impressive gross profit margins of 74.84%.
Benchmark suggests there could be considerable upside to Instacart’s third-quarter Gross Merchandise Value, even assuming flat year-over-year Monthly Active Users, based on industry-wide average order value and frequency gains of 8% and 9% respectively reported in September. InvestingPro analysis indicates CART is currently trading below its Fair Value and at a low PEG ratio of 0.17, suggesting the stock may be undervalued relative to its growth potential. InvestingPro offers additional insights through its comprehensive Pro Research Report, available for Instacart and 1,400+ other US equities.
In other recent news, Instacart announced an expanded partnership with Kroger, making Instacart the primary delivery fulfillment partner across all Kroger digital platforms. This collaboration will introduce AI-powered shopping experiences, such as Instacart’s Cart Assistant, to enhance customer interaction on Kroger’s iOS mobile app. Additionally, Instacart launched its AI Solutions, a comprehensive suite of enterprise offerings aimed at grocery retailers, including components like Agentic Commerce and AI Assistant. These tools are designed to provide more personalized shopping experiences using artificial intelligence.
Instacart has also partnered with Pet Supplies Plus to offer same-day delivery from over 700 stores across the United States, giving customers access to a wide range of pet products. In another strategic move, Instacart has teamed up with Grubhub to expand grocery delivery options, allowing Grubhub users to order groceries via its app, with fulfillment by Instacart. This service is set to be available nationwide by the end of October. Furthermore, several independent grocery chains, such as Big Bunny Market and Stewart’s Marketplace, are adopting Instacart’s enterprise technology solutions to modernize shopping experiences, including the use of AI-powered Caper Carts.
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