BMO Capital raises Instacart stock price target to $58 on solid growth

Published 08/08/2025, 12:12
BMO Capital raises Instacart stock price target to $58 on solid growth

Investing.com - BMO Capital has raised its price target on Instacart (NASDAQ:CART) to $58.00 from its previous target while maintaining a Market Perform rating on the stock. The company, currently trading at $49.39 with a market capitalization of $12.88 billion, maintains a "GREAT" financial health score according to InvestingPro analysis.

The food delivery company reported second-quarter 2025 gross transaction value (GTV) growth of 11% year-over-year, which was 1.8% above Street expectations, according to BMO Capital.

Instacart’s adjusted EBITDA grew 26% year-over-year in the same quarter, exceeding analyst consensus by 7.6%, driven by innovations across multiple areas of its business.

BMO Capital noted that Instacart’s solid performance was primarily attributed to AI-powered improvements in internal efficiencies and user experience, increased advertiser diversification, and continued focus on improving affordability for shoppers.

Despite the strong results and high growth potential, Instacart has maintained its third-quarter 2025 guidance in line with previous quarters, which BMO Capital characterized as a conservative approach.

In other recent news, Instacart has caught the attention of several analysts following its impressive quarterly performance. The company reported a gross transaction value of $9.08 billion and revenue of $914 million, both surpassing analyst expectations. This strong showing has led to a series of price target upgrades from various financial institutions. Stifel increased its price target to $64, citing accelerating order growth and higher engagement from the Instacart+ subscription service. BofA Securities raised its target to $58, noting strong margins and performance above Street estimates. Citizens JMP set a new target of $60, highlighting the company’s growth in gross transaction value and EBITDA. Meanwhile, Goldman Sachs adjusted its target to $67, attributing the rise to Instacart’s competitive positioning and operational efficiencies. Benchmark maintained its Hold rating, anticipating that upcoming earnings will align with consensus estimates.

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