Street Calls of the Week
Investing.com - Mizuho Financial Group initiated coverage on Instacart (NASDAQ:CART) with a Neutral rating and a $45.00 price target, representing a potential 6% upside from current levels. According to InvestingPro data, the company currently trades below its Fair Value, with impressive gross profit margins of 74.8% and maintains a strong financial health score.
The financial services firm cited increasing competition in the grocery delivery space as a key concern for Instacart, despite the company’s solid performance throughout 2024 and the first half of 2025. The company’s financial metrics support this performance, with revenue growing at 10.5% and maintaining a healthy current ratio of 3.32x.
Mizuho highlighted that Instacart had previously benefited from strategic initiatives, including a partnership with Uber and a $10 free shipping promotion, which helped accelerate order growth earlier this year.
The firm specifically pointed to intensifying competition from Uber and DoorDash, both of which are investing heavily in grocery delivery services. Amazon’s expanding grocery strategy was identified as a particular threat, with the e-commerce giant growing its same-day essentials delivery service and planning to expand fresh groceries to 2,300 cities by the end of 2025.
Given these competitive pressures, Mizuho indicated it would prefer to wait for better entry points for Instacart stock or more evidence that the company can successfully defend against rivals before taking a more positive stance. For deeper insights into Instacart’s competitive position and detailed financial analysis, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Instacart has launched its Consumer Insights Portal, a new platform that provides brand partners with access to real-time grocery shopping data. This software allows brands to view SKU-level performance metrics and other valuable insights from transactions across nearly 100,000 stores. Meanwhile, analysts have been weighing in on Instacart’s stock performance amid competitive pressures. Stifel has lowered its price target for Instacart to $56, citing competitive challenges, but maintained a Buy rating. Bernstein SocGen Group, on the other hand, reiterated its Outperform rating and $63 price target, despite Amazon’s recent partnership with Winn-Dixie for grocery delivery services in Florida. Cantor Fitzgerald also maintained an Overweight rating with a $63 price target, noting the potential risks from Amazon’s expansion but highlighting Instacart’s strong supplier relationships. Additionally, the New York City Council’s decision to establish minimum pay for grocery delivery workers has introduced new cost pressures, but Bernstein maintained its positive outlook on Instacart. These developments reflect the dynamic environment in which Instacart is operating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.