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Tuesday, Citi analysts, led by Alicia Yap, reaffirmed their Buy rating on Grab Holdings Inc. (NASDAQ: NASDAQ:GRAB) shares, maintaining a price target of $6.25. Currently trading at $3.48, the $14.16 billion market cap company has strong analyst support, with a consensus "Buy" recommendation. The endorsement follows Grab's product event, GrabX 2025, held in Singapore and broadcasted on YouTube on April 8. According to InvestingPro data, analysts see up to 63% upside potential from current levels. At the event, Grab's CEO & Co-founder, Mr. Anthony Tan, and Chief Product Officer, Mr. Philipp Kandal, discussed the company's AI investment strategy, consumer product enhancements, and AI tools for merchants and driver-partners.
The presentation highlighted Grab's "AI-first with heart" philosophy, focusing on AI solutions designed to benefit merchants and drivers. The company also unveiled an expansion of its consumer product offerings, targeting families and solo eaters, as well as the exploration of new consumer use cases.
During GrabX 2025, management showcased how the utilization of generative and agentic AI is set to improve the user experience, increase efficiency for merchants and driver-partners, and maintain Grab's competitive edge. These advancements are expected to result in lower delivery fees and better dispatch and fulfillment processes.
Citi's analysis suggests that the recent market sell-off, influenced by reciprocal tariff headwinds, presents an attractive entry point for investors. With revenue growing at 18.57% and net income expected to turn positive this year, the firm believes Grab's ongoing product innovation and proven track record of execution equip the company well to steer through current market uncertainties. The maintained Buy rating and $6.25 price target reflect Citi's confidence in Grab's strategic direction and market position. For a deeper understanding of Grab's valuation and growth prospects, including 8 additional key insights, check out the comprehensive research available on InvestingPro.
In other recent news, Grab Holdings has reported its first full year of positive group adjusted EBITDA, reaching $313 million, alongside a 21% revenue growth on a constant currency basis. The company also achieved a significant financial turnaround with an adjusted EBITDA and Free Cash Flow of $313 million and $136 million, respectively, for the full year of 2024. Furthermore, Grab Holdings has been awarded a Street-Hail Operator License in Singapore, allowing it to expand its taxi fleet to 800 vehicles within the next three years. Analysts from Macquarie have shown optimism about this development, suggesting it will enhance Grab's Mobility business.
Citi analyst Alicia Yap has maintained a Buy rating on Grab Holdings, raising the price target to $6.25 following the company's strong fourth-quarter performance. Despite concerns about regulatory costs in Indonesia, Yap believes that Grab's EBITDA forecast for 2025 likely accounts for these expenses. Additionally, JPMorgan upgraded Grab's stock rating to Overweight, setting a price target of $5.60, expressing confidence in the company's future performance and its ability to improve monetization and spending efficiency.
Grab Holdings' ability to navigate regulatory environments in Southeast Asia and maintain its EBITDA guidance indicates robust financial planning. The company's forward guidance for 2025 projects a revenue growth of 19-22%, with strategic investments in AI, mapping, and infrastructure to support this growth. These developments suggest a positive outlook for Grab Holdings as it continues to strengthen its market position in the region.
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