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Investing.com - Stifel has reduced its price target on Instacart (NASDAQ:CART) to $56.00 from $64.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the company maintains a "GREAT" financial health score, with impressive gross margins of nearly 75%.
The price target adjustment comes as Instacart shares have fallen 18% since August 11, 2025, significantly underperforming compared to the S&P 500 index’s 4.4% gain and the Nasdaq 100’s 4.5% increase during the same period.
Stifel cited Amazon’s recent announcement to offer free grocery delivery to Prime members in select U.S. markets and its addition of Winn Dixie to its service as factors influencing the decision.
The firm also noted that New York City’s closure of a minimum wage loophole will likely create headwinds for Instacart’s revenue going forward.
Despite these challenges, Stifel believes the recent market reaction to these developments is "overdone" and recommends buying Instacart shares at current levels, with the new price target still representing approximately 30% upside potential.
In other recent news, Instacart has launched its Consumer Insights Portal, a new platform that provides brands with real-time access to grocery shopping data. This software offers insights into SKU-level performance, search behavior, and promotion impact, derived from transactions across nearly 100,000 stores. Meanwhile, Bernstein SocGen Group has reiterated its Outperform rating on Instacart, maintaining a price target of $63.00 despite competition from Amazon’s partnership with Winn-Dixie in Florida. Additionally, Instacart faces regulatory changes as New York City approved minimum pay thresholds for grocery delivery workers, set to take effect in January 2026. Despite these challenges, Cantor Fitzgerald also maintained its Overweight rating on Instacart, citing the company’s strong supplier relationships. Citizens JMP continues to support Instacart with a Market Outperform rating and a price target of $60.00, emphasizing potential growth categories. These developments reflect ongoing dynamics in the grocery delivery sector, with Instacart navigating both competitive and regulatory landscapes.
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