On June 2, Morgan Stanley’s Divya Gangahar Kothiyal reiterated a Buy rating on Grab Holdings Limited (NASDAQ:GRAB) while revising the price target upward from $5.20 to $5.65.
According to Kothiyal, the company’s performance in on-demand services has been notably strong, benefiting in part from the favorable impact of foreign exchange, particularly the strengthening of ASEAN currencies relative to the U.S. dollar.
Despite prevailing macroeconomic headwinds, the analyst views Grab’s business model as well-positioned due to its ability to adapt to shifts in supply-side dynamics, such as improved driver availability and deeper engagement from merchant partners during softer economic periods. Kothiyal also notes that competitive pressures in Indonesia have eased, allowing Grab to gain market share in what she describes as a “more rational” industry environment.
In the food delivery space, the trend toward consolidation is viewed positively, with Grab’s strategy of deploying targeted incentives helping to drive both higher margins and increased usage frequency. In the fintech segment, the analyst highlights untapped potential in merchant lending. She believes that Grab’s strategic partnerships are enhancing its visibility and positioning in this space.
Grab is Southeast Asia’s leading superapp, seamlessly integrating deliveries, mobility, and digital financial services. Operating in over 800 cities across eight countries, including Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, it empowers millions daily to order food, send packages, book rides, make payments, and access financial services all within a single platform.
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