Bernstein reiterates Outperform rating on Grab stock with $5.20 target

Published 27/07/2025, 09:42
Bernstein reiterates Outperform rating on Grab stock with $5.20 target

Investing.com - Bernstein SocGen Group has reiterated an Outperform rating on Grab Holdings Inc. (NASDAQ:GRAB) with a price target of $5.20. The stock, currently trading at $5.36, has shown remarkable strength with a 61% return over the past year, according to InvestingPro data.

The research firm maintained its positive outlook on the Southeast Asian technology company, which operates ride-hailing, food delivery, and digital payment services across the region. With a market capitalization of $22.1 billion and revenue growth of 17.3% in the last twelve months, Grab demonstrates solid market presence.

Bernstein analyst Venugopal Garre reaffirmed the rating in a recent research note to investors, indicating continued confidence in Grab’s business model and growth prospects.

The $5.20 price target suggests potential upside for the stock based on recent trading levels, though specific drivers for the rating were not fully detailed in the available information.

Grab has been working to expand its super-app ecosystem throughout Southeast Asia, competing with regional and global technology platforms in the transportation and delivery sectors. The company’s strong liquidity position, with a current ratio of 2.49, provides solid backing for its expansion efforts.

In other recent news, Grab Holdings Limited has announced plans to raise $1.25 billion through convertible bonds. The funds will be used for share buybacks and potential acquisitions to enhance strategic flexibility. The company has already repurchased $226 million worth of shares as part of its previously announced $500 million buyback program. In addition, Grab reported a 19% year-over-year growth in on-demand gross merchandise volume for April and May 2025, highlighting the company’s resilience amid economic uncertainties. Mobility rides increased by 23% and Deliveries GMV rose by 20%, indicating strong user engagement.

Moody’s Ratings upgraded Grab’s corporate family rating to Ba3 from B1, maintaining a positive outlook due to improved credit quality and disciplined cost management. Citi analysts reiterated a Buy rating with a $6.20 price target, following Grab’s presentation at the Citi Pan-Asia Conference, where the company emphasized growth prospects and a manageable competitive landscape. Meanwhile, Grab is reportedly in talks to acquire Indonesian rival GoTo, with the deal contingent on financing and other terms. Advisors have been enlisted to assist with the potential acquisition, and discussions with banks are ongoing.

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