Update shared on18 Oct 2025
Fair value Increased 2.52%The analyst price target for Grab Holdings has increased from $6.29 to $6.45. Analysts cite stronger GMV momentum and improved earnings estimates, despite a recent valuation-driven downgrade.
Analyst Commentary
Recent analyst updates for Grab Holdings reflect a nuanced outlook on the company's valuation, growth trajectory, and execution capabilities. Although the majority of commentary acknowledges the firm's strong momentum, there are cautionary notes relating to recent stock performance and future expectations.
Bullish Takeaways
- Bullish analysts have raised their price targets, citing ongoing strength in Gross Merchandise Value (GMV) momentum, which supports higher earnings estimates for coming years.
- Upward revisions to EPS forecasts signal confidence in the company’s ability to deliver improved profitability through fiscal 2026 and 2027.
- The company's core growth levers are perceived as intact. This underpins its ability to maintain and strengthen market leadership in the sector.
- Strong operational execution and positive financial trends are contributing to a more optimistic outlook among several market watchers.
Bearish Takeaways
- Bearish analysts point to valuation concerns following a significant 30% stock rally from recent lows, suggesting the current share price may be stretched.
- There is a consensus that, in the near term, further upside may be limited, leading to neutral or hold recommendations despite the improved operational outlook.
- Some caution that while Grab's growth drivers remain robust, the stock’s recent momentum warrants a pause before further upgrades.
- These perspectives emphasize the importance of monitoring future earnings execution against elevated market expectations.
What's in the News
- Grab Holdings will pilot a drone delivery service in the Philippines, partnering with local regulators and Megaworld to explore commercial drone-powered logistics (Nikkei Asia).
- The company maintained its earnings guidance for fiscal year 2025, projecting revenue between $3.33 billion and $3.40 billion, representing year-over-year growth of 19% to 22%.
- Grab completed a significant share buyback, repurchasing 126,000,000 shares, about 3.12% of outstanding shares, for $499.6 million as part of its previously announced buyback program.
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $6.29 to $6.45, reflecting a modest increase in expected fair value.
- Discount Rate edged up marginally from 7.65% to 7.65%, indicating an almost unchanged approach to risk assessment.
- Revenue Growth projections have improved, moving from 20.44% to 20.52% year-over-year.
- Net Profit Margin estimates decreased fractionally from 14.94% to 14.92%.
- Future P/E ratio forecast has increased from 41.37x to 42.40x, suggesting slightly higher valuation expectations relative to earnings.
Disclaimer
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