Ride-sharing and food delivery application developer Grab Holdings could be poised for more upside following its latest earnings outlook, according to JPMorgan. The firm upgraded shares of the Singapore-based company to overweight from neutral. Its $5.60 price target implies 16.9% upside potential. On Thursday, the stock declined more than 10% after the company reported weaker-than-expected EBITDA and net income for the fourth quarter. Not only that, the company also issued soft full-year guidance. That brings the stock’s performance over the past 12 months to nearly 39% and its year-to-date performance to 1.4%. GRAB 1Y mountain GRAB, 1-year For 2025, Grab expects adjusted EBITDA to come in between $440 million and $470 million compared to the FactSet consensus estimate of $496.5 million. In terms of full-year revenue, Grab sees a range of $3.33 billion to $3.40 billion, while analysts were looking for $3.39 billion. “GRAB’s guidance could prove conservative,” analyst Ranjan Sharma wrote in a note to clients on Friday, adding that the company has delivered higher earnings than guided in both 2024 and 2023. “With investor expectations anchored to the guidance, we believe earnings delivery over the year will likely drive positive revisions in earnings expectations.” Sharma thinks that an expanding monthly transacting users base could be a sign of platform growth ahead. That could ultimately support earnings upside later in the year, he said. “With a reduction in costs that can be passed on to consumers, and initiatives to grow affordable services, we believe the growth in MTU should expand the addressable market and grow mid-term earnings,” he also said. Additionally, the analyst cited an increase in advertising revenue and the amount of quarterly active advertisers that joined the platform during the fourth quarter. With that trajectory, he expects advertising penetration to deepen even more, which could bolster both delivery revenues and margin growth. Along with Sharma, most analysts on Wall Street are bullish on the name. Out of the 25 total analysts covering it, 20 have a strong buy or buy rating, according to LSEG data. The remaining five analysts have a hold rating. It also has an average target of around $5, which reflects more than 15% upside from here. Grab shares rose more than 3% in premarket trading Friday following Sharma’s call.
