JPMorgan analyst Ranjan Sharma downgraded Grab Holdings (GRAB) to Neutral from Overweight with an unchanged price target of $5.60. The firm recommends taking profits on Grab after the 52% rally since January, 2024. Buy-side earnings expectations have increased over the last year and the stock appears to be pricing in strong earnings growth, the analyst tells investors in a research note. JPMorgan believes a “conservative” fiscal 2025 guidance from the company could weigh on buy-side earnings expectations near-term. In addition, the 13% share price gain following reports of a potential GoTo merger indicates optimism for significant cost synergies and margin expansions, contends JPMorgan. The firm cautions that the merger or the anticipated synergies might not materialize. As such, it looks for a better entry levels to accumulate Grab shares.
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