Update shared on04 Oct 2025
Fair value Increased 1.65%Analysts have modestly increased their fair value estimate for Grab Holdings to $6.29 from $6.19, citing continued growth momentum and updated financial projections.
Analyst Commentary
Recent analyst updates reflect a mix of optimism and caution regarding Grab Holdings' near-term prospects and valuation. The following summarizes the key bullish and bearish insights from Street Research:
Bullish Takeaways
- Bullish analysts have lifted price targets, citing continued strong gross merchandise value (GMV) momentum in recent quarters.
- Updated financial models reflect higher earnings per share estimates for fiscal years 2026 and 2027, indicating positive expectations for future profitability.
- Growth levers remain robust, with analysts highlighting the company's ability to strengthen its leadership position in its core markets.
- The company’s successful execution on strategic initiatives has reinforced analyst confidence in the sustainability of its growth trajectory.
Bearish Takeaways
- Some analysts have expressed concerns about elevated valuation following a notable rally in the stock price over the past month.
- Downgrades to Hold from Buy reflect a belief that recent gains may have priced in much of the near-term upside potential.
- Analysts calling for caution state that it may be time for the stock to consolidate before resuming further upward momentum.
- Despite ongoing positive operational trends, potential headwinds tied to macroeconomic factors or competition could limit future returns in the eyes of more cautious analysts.
What's in the News
- Grab Holdings announced plans to pilot a drone delivery service in the Philippines. The company is collaborating with local authorities and partners as part of efforts to expand the use of autonomous and AI-driven technologies. (Nikkei Asia)
- The company confirmed its earnings guidance for the fiscal year 2025, projecting revenue between $3.33 billion and $3.40 billion, which represents 19% to 22% year-over-year growth.
- Grab completed a significant share repurchase, buying back 126 million shares for a total of $499.6 million since February 2024. This demonstrates continued capital return to shareholders.
Valuation Changes
- Fair Value Estimate has risen slightly from $6.19 to $6.29 per share, reflecting modest upward adjustments in analyst models.
- Discount Rate has increased marginally to 7.65%, indicating a somewhat higher perceived risk or required return on equity.
- Revenue Growth projection is up slightly, now at 20.44% year-over-year compared to 20.39% previously.
- Net Profit Margin forecast has edged down modestly from 14.98% to 14.94%.
- Future P/E Ratio has risen to 41.4x from 40.6x, showing a marginal uptick in forward earnings multiple expectations.
Disclaimer
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