Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - BMO Capital raised its price target on Instacart (NASDAQ:CART) to $58.00 from $49.00 on Monday, while maintaining a Market Perform rating on the stock. According to InvestingPro data, analyst targets for the stock range from $45 to $67, with the company showing impressive gross margins of 74.8%.
The grocery delivery platform reported second-quarter 2025 gross transaction value (GTV) growth of 11% year-over-year, exceeding analyst expectations by 1.8%. Adjusted EBITDA grew 26% year-over-year, surpassing Street estimates by 7.6%. The company’s strong performance is reflected in its year-to-date return of 23.6%, with InvestingPro analysis indicating the stock is currently slightly undervalued.
BMO Capital attributed the solid performance to innovations across multiple fronts, including AI-powered improvements to internal efficiencies and user experience. The firm also highlighted increased advertiser diversification and continued focus on improving affordability for shoppers.
Despite these positive results, Instacart maintained its third-quarter 2025 guidance in line with previous quarters, which BMO described as conservative given the company’s high growth potential.
The price target increase reflects BMO’s updated valuation of the company following its strong quarterly performance, though the firm maintained its neutral Market Perform rating on Instacart stock.
In other recent news, Instacart reported its financial results for the second quarter of 2025, surpassing Wall Street expectations. The company posted earnings per share of $0.41, significantly higher than the forecasted $0.18, with revenue reaching $914 million compared to the anticipated $851 million. This performance has led to positive analyst reactions, with Bernstein raising its price target for Instacart to $63, maintaining an Outperform rating due to the company’s strong quarterly performance and increased order volumes. Similarly, Needham increased its price target to $66, citing the company’s quarterly performance and gross transaction value acceleration as key factors. These developments suggest a broader strength in the food delivery sector, aligning with positive reports from competitors like DoorDash (NASDAQ:DASH) and Uber (NYSE:UBER) Eats. Instacart’s raised guidance further underscores its robust growth trajectory. The company’s recent performance and analyst upgrades highlight the positive sentiment surrounding its future potential.
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