Instacart price target lowered to $50 from $52 at JPMorgan

JPMorgan analyst Doug Anmuth lowered the firm’s price target on Instacart (CART) to $50 from $52 and keeps an Overweight rating on the shares. The company reported strong Q4 transaction volume and guided Q1 above consensus with order growth upside driven by both monthly active users and higher frequency, the analyst tells investors in a research note. However, the firm says Instacart is investing in building new use cases via transaction take rate dilution as well as marketing, and accordingly its Q1 EBITDA outlook came in below expectations. JPMorgan is encouraged by the company’s focus on expanding sales, but ultimately expects to see more EBITDA margin expansion.