JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - Morgan Stanley maintained its Equalweight rating on Instacart (NASDAQ:CART) with a price target of $48.00, up from the previous $45.00, citing steady execution but ongoing competitive concerns. According to InvestingPro data, the company maintains a "GREAT" financial health score, with strong metrics across growth, profitability, and cash flow dimensions.
The grocery delivery platform beat expectations in the second quarter, continuing its track record of exceeding the high end of its gross transaction value (GTV) guidance in five of seven quarters since its IPO. The company has surpassed the high end of its adjusted EBITDA guidance in all seven quarters during that period. This performance is supported by impressive gross profit margins of nearly 75% and a healthy current ratio of 3.32, indicating strong operational efficiency.
Similar to trends seen at Uber Eats and DoorDash, Instacart experienced acceleration in both orders and GTV during the second quarter, driven by restaurant orders and an uptick in core grocery orders. However, Morgan Stanley expressed caution about potential deceleration as the company laps the first full quarter of its Uber Eats partnership in the third quarter.
The investment firm raised its 2026 GTV and adjusted EBITDA estimates by 3% and 5% respectively, reflecting the second-quarter outperformance and third-quarter guidance. The new $48 price target represents approximately 6% upside potential.
Morgan Stanley remains cautious on Instacart’s long-term outlook due to increasing competition from more diversified rivals targeting the approximately $1.5 trillion of remaining offline grocery and consumer packaged goods spending in the United States, noting it prefers to invest in the online grocery industry through more scaled competitors like Amazon, DoorDash, and Uber.
In other recent news, Instacart reported its financial results for the second quarter of 2025, surpassing Wall Street expectations with earnings per share of $0.41, significantly higher than the forecasted $0.18. The company’s revenue also exceeded predictions, reaching $914 million compared to the anticipated $851 million. Following this strong performance, several analyst firms adjusted their price targets for Instacart. Bernstein SocGen raised its price target to $63, citing strong growth and increased order volumes. BMO Capital also increased its target to $58, highlighting affordability gains and a gross transaction value growth of 11% year-over-year. Needham set a new target of $66, noting the acceleration in gross transaction value as a key factor. Instacart’s raised guidance and better-than-expected quarterly results suggest a positive trend in the food delivery sector, aligning with recent performances from competitors like DoorDash and Uber Eats.
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