Instacart Stock Gains Favor Among Wall Street Analysts: 'Valuation Is Attractive'

Instacart‘s CART stock, which has been underperforming, is now attracting positive attention from Wall Street analysts.

As per a report from Barron’s, Doug Anmuth from J.P. Morgan rated the stock of Instacart as Overweight, essentially a Buy rating. He noted that the online grocery sector is set to grow, and Instacart, as a market leader, is well-positioned to capitalize on this trend.

“Valuation is attractive," Anmuth wrote in a note on Monday.

Anmuth predicts that online grocery sales will make up over 25% of total grocery spending within the next eight to 10 years, up from roughly 12% last year. He believes that Instacart will play a crucial role in this shift and gain additional market share.

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Despite gaining 1.4% at the opening, Instacart’s shares fell back, recording a loss of over 2% to $25.02. However, J.P. Morgan projects the stock to reach $33 by December next year.

Anmuth also noted that Instacart’s current enterprise value is about six times J.P. Morgan's forecast for its adjusted 2025 earnings before interest, taxes, depreciation, and amortization. This represents roughly a 32% discount to the average valuation of competitors like Uber Technologies (UBER) and DoorDash (DASH).

Despite concerns about competition and discretionary spending, he is reassured by Instacart’s first-mover advantage in the grocery delivery business.

Other analysts, including those from Citi and Oppenheimer, also gave a Buy call for Instacart’s stock on Monday, citing its “compelling” valuation. They set target prices at $34 and $36, respectively.

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