Major Bank Rating | Citigroup: Lowers Grab target price to $6.4, maintains “Buy” rating
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Glonghui, May 6th|Citigroup released a research report stating that Grab's first-quarter results exceeded expectations, with revenue up 24% year-on-year to $955 million and group EBITDA reaching $154 million. This was mainly driven by robust on-demand GMV growth and better-than-expected EBITDA margin in the mobility business. Management has responded prudently to headwinds in the mobility sector and indicated that the impact of Indonesia's 8% commission cap is manageable, while a 32% year-on-year increase in transaction volume demonstrates resilient demand. In addition, proactive support measures are expected to alleviate the pressure of fuel costs brought about by conflicts in the Middle East. The bank has adjusted its profit forecasts for Grab for 2026 to 2028 to $437 million, $509 million, and $631 million, and has lowered the target price from $7.2 to $6.4. The “Buy” rating is maintained, with optimism regarding the company’s solid execution capabilities and leading applications in AI and autonomous driving.
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