Bank of America Securities analyst Justin Post reiterated a Hold rating on Maplebear (CART – Research Report) today and set a price target of $53.00.
Justin Post has given his Hold rating due to a combination of factors that reflect both potential and caution. The report indicates that while there is potential for modest upside in Maplebear’s gross transaction volume (GTV), revenue, and EBITDA for the fourth quarter, these estimates are largely in line with market expectations. The company has shown strength through its partnership with Uber and a robust consumer base, which could drive some growth. However, there is a noted deceleration in growth compared to the previous quarter, attributed to strong holiday performance and increased incentives in the prior year.
Despite the company’s historical performance of exceeding guidance, the mixed data from various sources such as BAC card data and Sensor Tower suggests a more cautious outlook. The report also highlights that while there is potential for revenue growth due to sector ad strength, the overall valuation of Maplebear has reached a point where it is less attractive compared to peers like DoorDash and Uber, which are experiencing faster growth. Therefore, the Hold rating reflects a balanced view of the company’s profitability and market position against its valuation and competitive landscape.