Analysts See More Gains For Grab After Big Quarter

Grab Holdings Ltd.’s success in cutting costs and outperforming competitors in Southeast Asia's ride-hailing market has propelled its share performance ahead of global peers this quarter, with analysts predicting further gains, Audrey Wan reported for Bloomberg News.

Grab Holdings Ltd.’s success in cutting costs and outperforming competitors in Southeast Asia's ride-hailing market has propelled its share performance ahead of global peers this quarter, with analysts predicting further gains. I Photo: Grab

Brokers are raising their price targets for the Singapore-based firm, with Evercore ISI International Ltd. among those citing increased profits driven by scale. Grab's operating profit is projected to reach $6.5 million this quarter, compared to a $38 million loss in the previous quarter, according to data compiled by Bloomberg.

Grab’s U.S.-listed shares have surged 35% since the end of September, making it the top-performing ride-hailing stock globally.

The company is turning its fortunes around through cost-cutting measures and expanding its user base.

"We believe secular growth, leading market share, and scale will drive significant profitability for Grab over time, just as they have for Uber globally," noted Evercore analysts, including Mark Mahaney, in a report.

After its third-quarter profit beat in early November, at least 22 analysts raised their target prices, according to Bloomberg data. Average forecasts suggest that Grab’s shares could reach $5.55 within 12 months—more than 8% higher than the stock's last closing price.