Instacart‘s (NASDAQ:CART) stock, which has been underperforming, is now attracting positive attention from Wall Street analysts.
As per a report from Barron’s, Doug Anmuth from J.P. Morgan rated the stock of Instacart as Overweight, essentially a Buy rating. He noted that the online grocery sector is set to grow, and Instacart, as a market leader, is well-positioned to capitalize on this trend.
“Valuation is attractive," Anmuth wrote in a note on Monday.
Anmuth predicts that online grocery sales will make up over 25% of total grocery spending within the next eight to 10 years, up from roughly 12% last year. He believes that Instacart will play a crucial role in this shift and gain additional market share.
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Despite gaining 1.4% at the opening, Instacart’s shares fell back, recording a loss ...