Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
On Friday, Oppenheimer analyst Jason Helfstein increased the price target for Instacart stock, listed on (NASDAQ:CART), from $60.00 to $65.00. The firm continues to recommend an Outperform rating for the company. Helfstein’s optimism is based on robust third-party data and a positive outlook for the company’s fourth-quarter earnings set to be released on February 25. The stock has already demonstrated impressive momentum, with InvestingPro data showing an 82.28% return over the past year and currently trading near its 52-week high of $53.44.
Instacart’s fourth-quarter Gross Transaction (JO:TCPJ) Value (GTV) is projected to grow by 13% year-over-year, outpacing Oppenheimer’s and Wall Street’s estimates by 4% and 3%, respectively. January data indicates this growth trend is accelerating, potentially surpassing the Street’s expectations of an 8% increase. Helfstein noted that their regression analysis, which has been conservative in the past, suggests the potential for even higher GTV figures. According to InvestingPro data, the company maintains impressive gross profit margins of 75.38% and has shown consistent revenue growth of 10.08% over the last twelve months. For deeper insights into Instacart’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The analyst pointed out that Instacart shares have already seen a significant increase this year, rising 27% compared to the NASDAQ’s 3% gain. However, he believes there is room for further growth if the company’s fourth-quarter GTV exceeds 10% and if first-quarter guidance aligns with these levels. This performance could lead to a re-rating of the company’s multiple to the high teens.
Looking ahead to fiscal year 2026, Helfstein’s analysis suggests that if Instacart maintains a 10% GTV growth over the next two years and keeps its operating expenses growth at an average of 3.5%, the company’s EBITDA could be approximately 20% higher than current Street estimates. The $65.00 price target is based on a valuation of 11 times the projected FY26 EBITDA, assuming a 15 times multiple on the published FY26E EBITDA.
In other recent news, Instacart has been the focus of several analyst reports, highlighting its financial performance and strategic initiatives. Seaport Global Securities initiated coverage with a Buy rating and a price target of $62, citing Instacart’s leading position in the online grocery market and potential for high revenue growth and robust EBITDA margins. Meanwhile, Bernstein analysts maintained an Outperform rating and raised their price target to $55, attributing the increase to improved Gross Transaction Volume (GTV) projections and EBITDA forecasts. Similarly, Mizuho (NYSE:MFG) Securities set an Outperform rating with a $55 target, emphasizing the company’s competitive edge and strategic investments in growth.
Additionally, Needham analysts upgraded Instacart to a Buy rating, setting a $56 price target and adding the company to their Conviction List, reflecting confidence in its strong customer experience and growth potential. Beyond analyst ratings, Instacart announced partnerships with DUMAC Business Systems and TRUNO Retail Technology Solutions to expand its AI-powered smart carts, enhancing the in-store shopping experience. This collaboration aims to integrate smart carts with existing point-of-sale systems, further supporting Instacart’s efforts to modernize retail experiences. These developments underscore Instacart’s strategic moves to strengthen its market position and support growth in the competitive grocery sector.
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