Analysts Stay Confident in Grab Holdings Limited (GRAB) Even as Shares Lag

Grab Holdings Limited (NASDAQ:GRAB) is among the stocks under $50 to buy now. On January 15, Jiong Shao, an analyst at Barclays, reaffirmed a Buy rating on Grab Holdings Limited (NASDAQ:GRAB), setting a price target of $7. Slightly above the consensus 1-year median price target of $6.95, the firm’s guidance reflects an upside potential of nearly 58%.

Later on January 19, BofA Securities upgraded Grab Holdings Limited (NASDAQ:GRAB) to Buy from Neutral, keeping an unchanged price target of $6.30. Despite the stock’s underperformance, with the stock down 17.85% in the last six months, the firm remains confident in the company. For core mobility and deliveries businesses, the firm highlighted muted competition and better margins, and thus projected a 17% CAGR for gross merchandise value (GMV) from FY24 to FY27.

phone, app

Pixabay/Public domain

What’s even more interesting is Grab Holdings Limited (NASDAQ:GRAB)’s over $5 billion net cash position, which the firm believes reduces the downside risk. That said, higher-than-anticipated performance in GrabMart or quick commerce operations can lead to additional upside, BofA Securities asserted.

Grab Holdings Limited (NASDAQ:GRAB) is Southeast Asia’s leading superapp based on GMV in food deliveries, mobility, and the financial services sector. From necessities to earning opportunities, the company claims to be an all-in-one platform that makes each day better.

While we acknowledge the potential of GRAB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GRAB and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.