GRABW - Grab: Consider Buying Before The Market Realizes It
2024-03-26 08:30:00 ET
Summary
- Grab Holdings Limited is a leading platform company headquartered in Singapore.
- Grab's revenue growth is expected to decelerate in 2024, but the company projects a reacceleration in revenue from 2025 onwards.
- Grab's mobility segment is expected to anchor its profitability inflection while driving growth opportunities in delivery and fintech.
- GRAB's valuation isn't aggressive, and market sentiments have remained tepid at best.
- I argue why investors should consider GRAB a speculative buy before the rest of the market realizes it.
Grab: Southeast Asia's Leading Platform Company
Grab Holdings Limited ( GRAB ) is a Singapore-headquartered platform company that operates a leading ride-hailing and delivery business. It also has a nascent fintech business, aiming to become Southeast Asia's leading super-app platform. The company has managed to improve its profitability metrics markedly in the mobility segment, aligned to its medium-term adjusted EBITDA margin targets. Accordingly, Grab management underscored its confidence in maintaining the adjusted EBITDA margin of Grab's mobility segment "at around 12% or higher." Since mobility accounted for nearly 80% of Grab's corporate adjusted EBITDA in the fourth quarter, it will continue to be a core earnings driver....
Grab: Consider Buying Before The Market Realizes It