Barclays Issues Pessimistic Forecast for Grab (NASDAQ:GRAB) Stock Price

Key Points

• Barclays cut its price target on Grab from $7.00 to $5.00, while keeping an overweight rating. The new target still implies about 31% upside from the prior close.
• Analyst sentiment on Grab remains mixed but generally constructive, with a consensus “Moderate Buy” and an average price target of $6.01. Other firms recently adjusted targets and ratings, including upgrades from China Renaissance and Weiss Ratings and cuts from Mizuho and JPMorgan.
• Grab’s latest quarterly results showed revenue beat expectations at $955 million, but EPS came in at -$0.01 versus a $0.02 estimate. The stock was trading around $3.81, near its 52-week low of $3.18 and well below its 52-week high of $6.62.

Grab (NASDAQ:GRAB - Get Free Report) had its price objective decreased by Barclays from $7.00 to $5.00 in a report issued on Thursday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Barclays's target price would suggest a potential upside of 31.41% from the company's previous close.

Several other equities analysts have also recently weighed in on GRAB. China Renaissance raised Grab from a "hold" rating to a "buy" rating and set a $5.00 price target on the stock in a report on Wednesday, May 6th. Mizuho lowered their target price on shares of Grab from $7.00 to $6.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 5th. Weiss Ratings upgraded Grab from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, May 6th. JPMorgan Chase & Co. lowered their price objective on Grab from $5.90 to $5.80 and set an "overweight" rating on the stock in a research report on Tuesday, May 5th. Finally, Morgan Stanley reiterated an "overweight" rating and set a $6.25 target price on shares of Grab in a research report on Tuesday, June 30th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Grab has a consensus rating of "Moderate Buy" and a consensus price target of $6.01.

Grab Trading Down 0.1%

Shares of NASDAQ GRAB opened at $3.81 on Thursday. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.67 and a quick ratio of 1.65. The firm has a 50-day moving average of $3.59 and a 200 day moving average of $4.02. Grab has a 1 year low of $3.18 and a 1 year high of $6.62. The stock has a market cap of $15.59 billion, a P/E ratio of 379.88, a price-to-earnings-growth ratio of 1.55 and a beta of 0.87.

Grab (NASDAQ:GRAB - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported ($0.01) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.03). Grab had a return on equity of 5.79% and a net margin of 10.67%.The company had revenue of $955.00 million during the quarter, compared to analysts' expectations of $921.71 million. As a group, sell-side analysts expect that Grab will post 0.1 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Philipp Wolfgang Josef Kandal sold 30,000 shares of the business's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $3.53, for a total transaction of $105,900.00. Following the completion of the sale, the insider directly owned 4,065,430 shares of the company's stock, valued at approximately $14,350,967.90. The trade was a 0.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Alexander Charles Hungate sold 144,093 shares of the business's stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $3.45, for a total value of $497,120.85. Following the completion of the sale, the chief operating officer owned 6,254,023 shares of the company's stock, valued at $21,576,379.35. The trade was a 2.25% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 1,766,093 shares of company stock valued at $6,384,921. Insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On Grab

Institutional investors and hedge funds have recently modified their holdings of the stock. Integrated Wealth Concepts LLC raised its stake in shares of Grab by 201.2% during the 1st quarter. Integrated Wealth Concepts LLC now owns 35,386 shares of the company's stock worth $160,000 after buying an additional 23,639 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of Grab by 6.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 9,231,195 shares of the company's stock worth $41,817,000 after acquiring an additional 529,433 shares during the last quarter. Empowered Funds LLC grew its stake in shares of Grab by 6.2% in the first quarter. Empowered Funds LLC now owns 52,698 shares of the company's stock valued at $239,000 after buying an additional 3,090 shares in the last quarter. Focus Partners Wealth purchased a new position in shares of Grab in the first quarter valued at approximately $63,000. Finally, Cetera Investment Advisers increased its holdings in Grab by 11.7% during the 2nd quarter. Cetera Investment Advisers now owns 106,710 shares of the company's stock worth $537,000 after purchasing an additional 11,158 shares during the period. Institutional investors and hedge funds own 55.52% of the company's stock.

Grab Company Profile

Grab Holdings Inc is a Singapore-based technology company that operates a consumer-facing "super app" across Southeast Asia offering services spanning ride-hailing, food and package delivery, and digital payments. Its platform connects consumers, drivers, merchants and delivery partners through mobile applications and supports on-demand mobility (taxi and private car), last-mile logistics, and on-demand food delivery under brands such as GrabFood and GrabExpress. The company has also developed a merchant-facing ecosystem that supports ordering, payment acceptance and loyalty functions.

Beyond transportation and delivery, Grab has expanded into financial services through Grab Financial Group, which provides digital payments via GrabPay, consumer lending, insurance distribution and small-business financial solutions.

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