Analyst Brian Nowak of Morgan Stanley maintained a Hold rating on Maplebear (CART – Research Report), boosting the price target to $45.00.
Brian Nowak has given his Hold rating due to a combination of factors related to Maplebear’s financial performance and strategic initiatives. The company’s core growth remains robust, with consistent execution reflected in their gross transaction value (GTV) and EBITDA results that slightly exceeded expectations. However, share buybacks were lower than anticipated, indicating a cautious approach in capital allocation despite previous substantial repurchases.
Maplebear’s fundamentals are strong, driven by increasing user engagement and order frequency, supported by investments in affordability and order quality. The company is also exploring advanced technologies like machine learning and computer vision to enhance operational efficiency and customer experience. Despite these positive developments, the stock’s current valuation and competition from faster-growing peers like Amazon, DoorDash, and Uber suggest a more cautious outlook, justifying the Hold rating.
Nowak covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Pinterest, and Meta Platforms. According to TipRanks, Nowak has an average return of 6.0% and a 60.24% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $53.00 price target.