Analyst Ronald Josey of Citi reiterated a Buy rating on Maplebear (CART – Research Report), retaining the price target of $55.00.
Ronald Josey has given his Buy rating due to a combination of factors that highlight Maplebear’s positive growth trajectory. The company is experiencing accelerating order growth, driven by improved affordability measures such as lower delivery fees for IC+ members and enhanced loyalty integration. Additionally, the introduction of newer services like food delivery through Uber Eats and the strong engagement from the 2024 user cohort are contributing to increased frequency and usage trends, which are expected to continue positively.
Despite a decline in average order values in the fourth quarter of 2024, the focus remains on the growing usage and stability of existing user cohorts, who are increasing their order frequency and spending per use. The advertising business of Maplebear is also seeing greater adoption, with ad growth anticipated to surpass gross transaction value growth in the first quarter. Although lower first-quarter EBITDA guidance led to a temporary decline in share prices, the overall positive usage trends support the Buy rating.
Josey covers the Communication Services sector, focusing on stocks such as Meta Platforms, Alphabet Class A, and Zillow Group Class A. According to TipRanks, Josey has an average return of 26.9% and a 60.25% success rate on recommended stocks.
In another report released today, Needham also reiterated a Buy rating on the stock with a $56.00 price target.