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Investing.com - Citizens JMP raised its price target on Instacart (NASDAQ:CART) to $60.00 from $55.00 on Friday, maintaining a Market Outperform rating following the company’s strong quarterly results. The company, currently valued at $12.88 billion, has demonstrated impressive financial health with a "GREAT" overall rating according to InvestingPro analysis.
Instacart reported second-quarter 2025 gross transaction value (GTV) growth that accelerated one percentage point from the first quarter, with GTV exceeding the high end of guidance by $81 million, or 1%. The company’s EBITDA also outperformed, coming in $8 million (3%) above the high end of guidance. With an impressive gross profit margin of 75.22% and revenue growth of 11.34%, InvestingPro data indicates net income is expected to grow this year.
The company’s third-quarter 2025 GTV and EBITDA guidance were 2% and 3% above consensus at the midpoints, respectively. Citizens JMP noted that Instacart+ members are growing, while the 2025 new customer cohort is larger than last year’s.
According to Citizens JMP, Instacart’s lowered minimums and expansion into restaurants through its Uber (NYSE:UBER) partnership appear to be driving better frequency and user habituation, while the 24% year-over-year EBITDA growth suggests these efforts are driving profitable growth.
While Citizens JMP expects GTV growth to slow in the third quarter as Instacart laps the start of its Uber partnership, the firm believes growth appears to be sustainably in the high-single digits, with significant opportunity to extend Instacart’s advertising platform to power more grocers’ retail media. Based on InvestingPro’s Fair Value analysis, the stock is currently trading near its fair value, with 10 additional ProTips available for subscribers.
In other recent news, Instacart’s second-quarter earnings have attracted attention, with Goldman Sachs raising its price target for the company to $67.00, up from $60.00, while maintaining a Buy rating. The increase comes after Instacart’s Gross Transaction (JO:NTUJ) Value surpassed expectations, driven by competitive positioning and operational efficiencies. Meanwhile, Benchmark has maintained its Hold rating on Instacart, anticipating that the company’s upcoming earnings report will align with consensus estimates. Additionally, Bernstein raised its price target to $60.00, citing advertising growth and potential upside to Wall Street’s EBITDA forecasts.
Citizens JMP has reiterated its Market Outperform rating with a $55.00 price target, emphasizing Instacart’s recent partnerships with OpenAI, YouTube, and TikTok. These partnerships are seen as significant for the company’s delivery services expansion. Furthermore, Citizens JMP highlighted Instacart’s order density as a factor in its positive unit economics, particularly for small basket orders. The firm’s analysis points to Instacart’s frequent shopper presence at large format stores, enhancing its operational efficiency. These developments reflect a mix of strategic growth and market confidence in Instacart’s business model.
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