Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - Cantor Fitzgerald has maintained its Overweight rating and $63.00 price target on Instacart (NASDAQ:CART) amid Amazon’s grocery expansion plans. The company’s strong fundamentals support this outlook, with impressive gross profit margins of 75% and revenue growth of 10.5% over the last twelve months, according to InvestingPro data.
The research firm acknowledges that Amazon’s grocery ambitions introduce new risks to Instacart’s business model but believes the company will benefit from its favorable supplier relationships within the grocery industry.
Cantor Fitzgerald expects several grocers to explore deeper relationships with Instacart and improve the value proposition of its service over the next 12-18 months, similar to developments that occurred in 2017-2018 following Amazon’s acquisition of Whole Foods Market.
These strengthened partnerships should help Instacart meaningfully improve its consumer value proposition over the next 12-18 months, according to the research firm’s analysis.
The firm suggests these developments will indirectly enhance Instacart’s competitive advantages in the grocery delivery market despite the increased competition from Amazon.
In other recent news, Instacart reported impressive second-quarter results, surpassing expectations with an 11% year-over-year growth in gross transaction value and a 26% increase in adjusted EBITDA. This performance exceeded analyst expectations, contributing to various firms adjusting their price targets for the company. Bernstein SocGen Group raised its price target to $63, citing strong growth and increased order volumes, while BMO Capital increased its target to $58, highlighting affordability gains. Morgan Stanley also adjusted its price target to $48, acknowledging steady execution despite competitive concerns. Meanwhile, JMP reiterated its Market Outperform rating with a price target of $60, emphasizing potential growth categories. Additionally, Instacart announced the appointment of Etsy CEO Josh Silverman to its Board of Directors, bringing valuable marketplace and technology leadership experience to the company. These developments underscore Instacart’s continued strong performance and strategic leadership enhancements.
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