4 Analysts Assess Grab Holdings: What You Need To Know

In the last three months, 4 analysts have published ratings on Grab Holdings GRAB, offering a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $5.89, along with a high estimate of $6.50 and a low estimate of $5.45. This current average has increased by 3.88% from the previous average price target of $5.67.

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into how financial experts perceive Grab Holdings. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Grab Holdings. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Grab Holdings compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Grab Holdings's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Grab Holdings's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Grab Holdings analyst ratings.

Unveiling the Story Behind Grab Holdings

Founded in 2012, Grab provides ride-sharing services, food and grocery delivery, and financial services (payments, consumer loans, and enterprise offerings) in eight Southeast-Asian countries through its mobile platform. The company partners with merchants and riders, connecting them with consumers while charging commission to both sides. Grab has a leading market share in and derives 89% of its revenue from its core businesses, ride-sharing and food delivery. Singapore and Malaysia contributed 58% of revenue as of end-2021. Grab's main competitors in Southeast Asia are Foodpanda and Gojek, the ride-sharing arm of GoTo. Its financial services business is still in its nascent stage and provides minimal revenue currently. The company now also generates advertising revenue.

Key Indicators: Grab Holdings's Financial Health

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Grab Holdings's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 16.42%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 3.63%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Grab Holdings's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.41% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Grab Holdings's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.29%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Grab Holdings's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.05.

Analyst Ratings: Simplified

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.