Grab Holdings ( NASDAQ: GRAB ) stock bounced sharply on Monday after a key upgrade from JP Morgan.
Shares of the Singaporean “super app” surged 9.84% shortly after the market open, accelerating from a close on Friday that neared 52-week lows. The sudden move upward follows an upgrade note from JP Morgan that cited strong signs for online spending in Asia and a strong runway towards the ever-elusive profitability that much of the eCommerce space is pursuing at present.
“Grab's superior regional super-app platform is best geared to rising online consumption in ASEAN, in our view,” the upgrade explained. “The profitable mobility segment is likely to shift into high gear as economies re-open, making mobility a high-frequency, high cash-flow engine to Grab's flywheel.”
Given the faster push towards profitable growth, meaningful earnings surprises are eminently possible, in the bank’s view. After an over 60% selloff for the stock to start 2022, the analysis assessed shares as fairly valued at present. A $3 price target was assigned to the stock alongside the upgrade to a Buy-equivalent rating.
Read more on the fintech slump seen in the first half of 2022 .
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Grab Holdings stock soars after JP Morgan upgrade