GRAB - Grab Remains Expensive - Likely To Trade Sideways In Intermediate Term

2024-05-23 14:00:00 ET

Summary

• GRAB is the UBER equivalent in Southeast Asia, benefiting from the latter's departure in 2019 and the well-diversified Super App offerings.
• GRAB's "hyper-local approach" has directly contributed to its robust top/ bottom lines, with FY2024 expected to be its first year of positive adj EBITDA margins.
• Much of the top/ bottom line tailwinds are attributed to its sticky offerings, growing customer base, and robust opportunities in the high margin advertising business.
• However, despite its recovery and promising raised FY2024 guidance, GRAB remains expensive compared to its Super App peers.
• As a result, the stock is likely to trade sideways as it slowly grows into its premium valuations in the intermediate term.

The GRAB Investment Thesis Remains Expensive For So Long That Its Profits Are Minimal

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