Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Bernstein SocGen Group raised its price target on Instacart (NASDAQ:CART) to $63.00 from $60.00 on Monday, while maintaining an Outperform rating on the stock. The new target aligns with broader analyst sentiment, with targets ranging from $45 to $67, as the stock trades near $52 with impressive YTD returns of 24%.
The price target increase follows Instacart’s latest earnings report, which showed better-than-expected growth led by increased order volumes. The company also raised its guidance, continuing a trend of strong performance among e-commerce companies this quarter. InvestingPro data reveals robust fundamentals, with a 75% gross profit margin and revenue growth of 10.5% in the last twelve months.
Bernstein SocGen noted that Instacart’s results align with recent positive reports from competitors DoorDash (NASDAQ:DASH) and Uber (NYSE:UBER) Eats, suggesting a broader trend of consumers increasingly ordering from home. With a strong current ratio of 3.3 and more cash than debt, Instacart appears well-positioned to capitalize on this trend. Discover 10+ additional exclusive insights about CART with an InvestingPro subscription.
The firm expressed optimism about Instacart’s third-quarter guidance, stating it should help address concerns about tougher restaurant comparisons. Ongoing strength in EBITDA performance was highlighted as a positive indicator for potential upward revisions to consensus estimates.
The strong results come as Instacart prepares for a leadership transition, with incoming CEO Chris Rogers set to assume the role next week.
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, and reported revenue of $914 million, exceeding the anticipated $851 million. This strong performance was further highlighted by an 11% year-over-year growth in gross transaction value and a 26% increase in adjusted EBITDA. Following these results, several analyst firms adjusted their outlook on Instacart. BMO Capital raised its price target to $58, maintaining a Market Perform rating, while Bernstein increased its target to $63, citing strong growth and maintaining an Outperform rating. Needham also raised its price target to $66, highlighting the acceleration in gross transaction value and keeping a Buy rating. These developments reflect a positive sentiment in the food delivery sector, echoed by similar performances from competitors like DoorDash and Uber Eats. Instacart’s raised guidance and increased order volumes have contributed to this favorable outlook.
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