Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Wednesday - Seaport Global Securities has initiated coverage on Instacart shares (NASDAQ:CART) with a Buy rating and a price target set at $62.00. The firm’s analyst cites several reasons for the positive outlook, including the massive total addressable market (TAM) for online groceries, which is expected to continue its shift to digital platforms, albeit at a more gradual pace. According to InvestingPro data, the stock has shown remarkable momentum with an 81% return over the past year and is currently trading near its 52-week high of $50.48.
Instacart, referred to as Maplebear Inc. in formal documentation, is recognized by Seaport as the leading third-party (3P) online grocery platform in the United States, especially noted for handling larger-sized baskets. The analyst believes Instacart delivers a compelling value proposition to a variety of stakeholders, including consumers, retailers, brands, and the shoppers who fulfill orders. InvestingPro analysis reveals impressive fundamentals, with a robust gross profit margin of 75% and strong liquidity, maintaining a current ratio of 3.06.
The coverage highlights Instacart’s potential for high-single digit revenue growth over the long term, alongside the anticipation of robust EBITDA margins surpassing 35%. The financial metrics mentioned specifically refer to a projected 6x 2026E EV/GP (Enterprise Value to Gross Profit).
Instacart’s position in the market as a clear leader is bolstered by its comprehensive service offerings, which are designed to meet the needs of a diverse customer base. The company’s business model and strategies are expected to drive continued growth and profitability, as reflected in the analyst’s expectations and the newly set price target.
In other recent news, Instacart has seen a series of analyst upgrades and strategic partnerships. Bernstein analysts increased their price target for Instacart shares to $55, maintaining an Outperform rating based on expected growth in Gross Transaction (JO:TCPJ) Volume (GTV) and improved EBITDA forecasts. Similarly, Mizuho (NYSE:MFG) Securities initiated coverage on Instacart shares with an Outperform rating and a $55 price target, citing the company’s leading position in the grocery delivery sector and its growth investments.
Needham analysts have upgraded Instacart shares from a Hold to a Buy rating, setting a price target of $56. This upgrade was influenced by the company’s robust performance and potential growth trajectory. Conversely, Wells Fargo (NYSE:WFC) began coverage on Instacart shares with an Equal Weight rating and a lower price target of $47, citing slightly lower revenue and EBITDA forecasts for fiscal years 2025 and 2026.
In addition, Instacart announced partnerships with DUMAC Business Systems and TRUNO Retail Technology Solutions to expand the availability of its AI-powered smart carts, enhancing the shopping experience for customers. These recent developments reflect the ongoing efforts of Instacart to enhance retail experiences and support growth within the grocery sector.
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