IPOS - Why This Instacart Analyst Is Sidelined After IPO: 'Online Grocery Sales May Lag' | Benzinga
Adding to the cart, but not checking out yet — that's how Bernie McTernan at Needham & Company described the situation after Instacart (NASDAQ: CART) made a splash on the Nasdaq on Tuesday.
With shares falling over 5% during Wednesdays session toward its initial IPO price of $30, how does Needham & Company feel about the stock?
The CART Analyst: McTernan initiated coverage on Instacart with a "Hold" rating, and did not give a price target.
His caution stems from several concerns, not least of which is the company's anticipated growth trajectory and the intensifying competitive landscape of the online grocery sector.
The CART Takeaways: McTernan sees a balanced risk-reward scenario for the stock, reflecting a forecasted growth slowdown after the pandemic's unprecedented surge in demand, combined with the mature nature of CART's advertising arm.
The analyst is bearish about the post-pandemic online grocery sales outlook, suspecting that they may lag ...