GRAB Stock Forecast & Price Target

Grab Holdings has demonstrated robust growth across its core segments, with On-Demand GMV increasing by 15% year-over-year, driven by a notable 17% rise in Mobility and a 13% boost in Delivery services. Additionally, the Fintech segment recorded an impressive growth rate of 34% year-over-year, attributable to enhanced monetization strategies for its lending services. The company anticipates revenue for FY24 to reach between $2.76 billion and $2.78 billion, reflecting a year-over-year growth of 17-18%, supported by successful product offerings that enhance market penetration and cross-selling opportunities.

Grab Holdings has encountered a negative market reaction, as evidenced by a 10%+ selloff in aftermarket trading despite reporting strong fourth-quarter results. The company’s conservative guidance for FY25, which fell slightly below consensus expectations, raises concerns about its growth trajectory amidst significant investment risks including regulatory challenges and macroeconomic instability. Additionally, higher-than-expected costs in its fintech segment have impacted EBITDA, indicating potential profitability issues, while ongoing competitive pressures could hinder its market share in the core ride-sharing and food delivery segments.