Instacart stock price target raised by Stifel to $64 on strong growth

Investing.com - Stifel has raised its price target on Instacart (NASDAQ:CART) to $64.00 from $55.00 while maintaining a Buy rating on the stock. Currently trading at $49.39, the stock sits within analysts’ target range of $41-$67, with InvestingPro data showing impressive gross profit margins of 75.22%.

The price target increase follows Instacart’s second-quarter results and third-quarter guidance that exceeded market expectations, with the company showing accelerating order growth led by its Instacart+ subscription service, which is experiencing higher engagement and user penetration.

Instacart’s advertising business has reached a significant milestone, now exceeding a $1 billion run rate, with the Carrot Ads feature appearing in 10% of orders, demonstrating resilience despite a spending pullback from a major consumer packaged goods client.

Stifel highlighted that smaller and mid-sized clients helped offset the reduced spending from the larger advertiser, while noting several upcoming revenue opportunities including Storefront and Offsite ads that position the core business for continued growth.

The firm also pointed to operational improvements supporting profit margins, specifically mentioning increased batch orders and artificial intelligence deployments that are helping Instacart convert top-line growth into stronger financial performance.

In other recent news, Instacart reported impressive quarterly earnings, with gross transaction value (GTV) of $9.08 billion and revenue of $914 million, both surpassing analysts’ expectations. Following these results, several financial institutions have adjusted their price targets for the company. BofA Securities raised its target to $58, citing strong margins, while Citizens JMP increased its target to $60, highlighting strong growth and an outperforming EBITDA. Goldman Sachs also raised its price target to $67, attributing the increase to Instacart’s competitive positioning and operational efficiencies.

In addition, Bernstein raised its target to $60, pointing to advertising growth and potential upside to EBITDA forecasts. Benchmark maintained a Hold rating, expecting upcoming earnings to align with consensus estimates. These developments underscore the positive reception of Instacart’s financial performance and future prospects among analysts.

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