On Tuesday, Jefferies raised its price target on Maplebear Inc. (NASDAQ:CART) to $50 from $48, while maintaining a Hold rating on the shares.
This adjustment reflects Jefferies’ analysis of Maplebear’s grocery business, which indicates a path to meeting consensus gross transaction volume (GTV). The firm also sees potential for additional upside from contributions through its partnership with Uber Eats.
A wide aisled grocery store stocked with natural and organic groceries and dietary supplements.
Despite the positive trajectory of the grocery business, the Hold rating is maintained due to concerns about margin visibility. This caution stems from Maplebear’s recent ramp-up in marketing efforts and affordability initiatives, as well as a slower-than-expected build-out of high-margin advertising revenue.
In Q1 2025, Maplebear reported total revenue of $897 million, which was up 9% year-over-year, and an adjusted EBITDA of $244 million, which was up 23%. GTV reached $9.1 billion and marked a 10% year-over-year growth that was driven by a 14% increase in orders to 83.2 million. Maplebear Inc. is also referred to as Instacart and provides online grocery shopping services to households in North America.
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This article is originally published at Insider Monkey.
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