2023-04-21 10:43:50 ET
Benchmark started coverage of Grab Holdings ( NASDAQ: GRAB ) at Buy on Friday, viewing the company as a “market consolidator" in Southeast Asia.
“We believe that digital economy growth in SEA will outperform global markets in the next 3-5 years. In the 2023-24 timeframe, with increasing global macroeconomy uncertainties and rising cost of capital, we foresee a shift in market dynamics with a race for growth becoming a race for sustainability, or more acutely, a race for survival,” equity analyst Fawne Jiang explained. “We anticipate market consolidation as subscale players struggle to survive and ultimately exit. With a dominant market share in mobility (~70%) and food delivery (~50%), we view GRAB as a significant market consolidator in SEA.”
As such, Jiang initiated the stock with a Buy rating and a $4 price target. Despite the upbeat initiation, shares of Grab dipped in morning trading on Friday.
Read more on the company’s most recent earnings result .
For further details see:
Grab Holdings attracts bullish initiation at Benchmark