Needham raises Instacart stock price target to $66 on GTV acceleration

Published 08/08/2025, 12:44
Needham raises Instacart stock price target to $66 on GTV acceleration

Investing.com - Needham has raised its price target on Instacart (NASDAQ:CART) to $66.00 from $56.00 while maintaining a Buy rating on the stock. The company has demonstrated strong financial performance, with impressive gross margins of 75.2% and a robust YTD return of 19.2%.

The firm cited Instacart’s recent quarterly performance, which exceeded the high end of guidance and showed gross transaction value (GTV) acceleration, as key factors behind the increased target.

Needham estimates that GTV growth accelerated both including and excluding Uber (NYSE:UBER) restaurant GTV, marking an important milestone for the company against what it described as "low expectations."

The research firm noted that while the trajectory of GTV growth remains a key debate point among investors, the second-quarter results served as a positive checkpoint for the company.

Needham continues to view Instacart favorably due to its "reasonable valuation" and potential to compound EBITDA at high-teen percentages or better, suggesting there could still be upside to current estimates.

In other recent news, Instacart reported its financial results for the second quarter of 2025, surpassing Wall Street expectations. The company achieved earnings per share (EPS) of $0.41, significantly higher than the forecasted $0.18, marking a surprise of 127.78%. Additionally, revenue exceeded predictions, reaching $914 million compared to the anticipated $851 million. These results underscore a strong performance for the quarter. Analysts had projected lower figures, making the actual results noteworthy. The earnings announcement has drawn attention from investors and analysts alike. While stock movement details are not the focus, the financial outcomes have positioned Instacart in a positive light. These developments are part of a series of recent updates from the company.

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