Grab (GRAB) Stock Price: Why It Went Up Over 14% Today

By Amit Chowdhry ● May 31, 2022
  • The stock price of Grab Holdings Ltd (NASDAQ: GRAB) increased by over 14% during intraday trading today. This is why.

The stock price of Grab Holdings Ltd (NASDAQ: GRAB) increased by over 14% during intraday trading today. Investors are responding positively to a bullish research report.

Bernstein analyst Venugopal Garre upgraded Grab Holdings from a “Market Perform” rating to an “Outperform” rating. And Garre assigned the company a price target of $3.04.

Garre noted that Grab corrected 18% over the past month and 76% from the listing, which was led by weaker than expected CY21 and stock flow due to the phased lock-up expiry. 

“Despite the gloomy backdrop, we upgrade Grab to Outperform, as we see risk-reward attractive and see it as a beneficiary of the post-pandemic reopening. Our upgrade primarily reflects the favorable risk-reward, improving momentum in Ride-hailing, which will offset a moderation in food and the potential long-term value from Fintech and Grocery,” wrote Garre in a research note. “We expect a peaking of incentives in 1H and gradual improvements post that as driver supply slowly improves. A relatively benign competitive environment as competitors focus on profitability is additional support.”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.