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Investing.com - Bernstein raised its price target on Instacart (NASDAQ:CART) to $63.00 from $60.00 on Friday, maintaining an Outperform rating following the company’s strong quarterly performance. The new target sits well above the current trading price of $49.39, though still within the analyst range of $41-$67. According to InvestingPro data, the company maintains an impressive financial health score of "GREAT."
The grocery delivery platform reported better-than-expected results and raised its guidance, primarily driven by increased order volumes. With robust revenue growth of 11.34% and industry-leading gross margins of 75.22%, this performance aligns with recent positive reports from competitors DoorDash (NASDAQ:DASH) and Uber (NYSE:UBER) Eats, suggesting broader strength in the food delivery sector.
Bernstein noted that while it may take time to fully understand the underlying drivers of second-quarter performance, consumers are clearly placing more orders from home. The firm added that Instacart’s third-quarter guidance should help alleviate concerns about tougher restaurant comparisons.
The research firm expressed optimism about potential upward revisions to consensus estimates, citing Instacart’s continued strength in EBITDA performance as a positive indicator for future financial results.
The price target increase comes as Instacart prepares for a leadership transition, with incoming CEO Chris Rogers set to assume the role next week, which Bernstein characterized as "a good handoff."
In other recent news, Instacart reported its financial results for the second quarter of 2025, surpassing Wall Street expectations. The company posted earnings per share of $0.41, significantly higher than the forecasted $0.18, marking a surprise of 127.78%. Revenue also exceeded projections, reaching $914 million compared to the anticipated $851 million. This robust performance reflects positively on Instacart’s financial health and operational efficiency. Additionally, Needham raised its price target for Instacart to $66 from $56, maintaining a Buy rating on the stock. The firm highlighted Instacart’s gross transaction value acceleration as a key factor behind the increased target. These developments indicate strong momentum for Instacart in the market. Investors may find these results encouraging as they reflect the company’s ability to exceed expectations.
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