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On Thursday, Cantor Fitzgerald confirmed its positive stance on Instacart shares (NASDAQ:CART), maintaining an Overweight rating and a $55.00 price target. The affirmation comes despite Instacart’s stock performance lagging behind the Nasdaq by 18 percentage points since the announcement of its fourth-quarter results. The underperformance is attributed to concerns about two main issues: a slowdown in Gross Transaction (JO:TCPJ) Value (GTV) growth projections for the years 2025 and 2026, and the potential effects of a shift towards smaller basket orders on the company’s EBITDA margin trajectory. According to InvestingPro data, the company maintains strong fundamentals with an impressive 75.25% gross profit margin and healthy revenue growth of 11.05% over the last twelve months.
Cantor Fitzgerald’s analyst provided insights into the unit economics of different order types for Instacart, suggesting that smaller basket orders could actually contribute to the company’s order growth. This, in turn, would support sustained GTV growth within the high single-digit to low double-digit range. The analyst expressed confidence that Instacart has numerous strategies at its disposal to manage unit economics effectively and to achieve margin expansion in the financial years 2025 and 2026. InvestingPro’s analysis shows the company maintains a strong financial health score of 3.13 (rated as GREAT), with robust cash flow metrics and minimal debt exposure.
The report highlighted the attractive risk/reward profile for Instacart shares at their current market price. With the stock trading at nine times the forecasted FY26E EBITDA, Cantor Fitzgerald views the recent decline in share price as a buying opportunity for investors. The firm’s stance suggests optimism about Instacart’s ability to navigate market challenges and capitalize on growth opportunities in the upcoming years. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with technical indicators suggesting oversold conditions. Discover more insights and 10+ additional ProTips by accessing the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Maplebear Inc. has appointed Lisa Blackwood-Kapral as the new Chief Accounting Officer, effective March 10, 2025. This leadership change follows the resignation of Alan Ramsay, who will assist with the transition until mid-March. Blackwood-Kapral joins the company with extensive experience, having served in similar roles at Lyft (NASDAQ:LYFT), Inc. and Shutterfly, LLC. Meanwhile, Instacart has been the focus of various analyst updates. Bernstein analysts have reiterated an Outperform rating with a $55 price target, noting the company’s strategic expansion into restaurant delivery and smaller grocery orders. Stifel has raised its price target to $57 while maintaining a Buy rating, highlighting strong order growth despite some advertising challenges. Benchmark maintains a Hold rating, expressing concerns over Instacart’s pricing strategy and competitive pressures. BMO Capital Markets has slightly increased its price target to $49, citing an acceleration in order velocity and strategic initiatives as positive factors.
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