GRAB Stock Pops on Massively Bullish Forecasts from Morgan Stanley, Citi, Jeffries, & Barclays Analyts

Grab Holdings GRAB +2.25% ▲ shares rose more than 2% yesterday as the market reacted to the company’s surprise move into Taiwan. The Southeast Asian app announced it will acquire Delivery Hero’s (DLVHF) foodpanda business in Taiwan for $600 million in cash. While the broader market struggled, Grab outperformed after receiving an influx of reiterated Buy ratings from top analysts at Morgan Stanley MS +1.77% ▲ , Jefferies JEF +3.72% ▲ , Citi C +1.94% ▲ , and Barclays BCS +3.04% ▲ .

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Morgan Stanley Supports Strategic “Well-Priced” Deal

Analyst Divya Gangahar from Morgan Stanley reiterated a Buy rating and a $6.40 price target yesterday. This forecast implies a 75.82% upside from the stock’s recent price. The firm highlighted that the deal is a bargain compared to previous attempts by competitors to buy the same asset.

In the report, Morgan Stanley described the development as a “strategically compelling and well-priced deal for Grab,” noting that the company is acquiring a profitable asset at a “meaningful discount” to the $950 million Uber sought to pay in 2024. The firm also noted that since Grab is a new player in Taiwan, it should have a “clear regulatory path” without triggering monopoly concerns.

Jefferies Expects Grab to Succeed with Proven Strategy

Jefferies analyst Thomas Chong also weighed in yesterday, maintaining a Buy rating and an even higher $6.70 price target, representing an 84.07% upside. Although the announcement was “unexpected by the market,” the firm believes Grab can successfully export its technology to this ninth market.

The Jefferies report noted that the deal would allow Grab to “replicate its Southeast Asian delivery success” in Taiwan. Analysts at the firm expect the deal to help Grab’s revenue growth immediately, projecting that adjusted EBITDA will reach $700 million in 2026.

Wall Street Ratings Rally Behind Grab’s Move

A massive influx of support swept through the market yesterday, March 23, and early this morning, March 24, as several major firms updated their outlooks:

• Citi: Analyst Alicia Yap reiterated a Buy rating with a $7.20 price target, the highest on the street, signaling a 97.80% upside.

• Barclays: Jiong Shao reiterated a Buy rating with a $7.00 target, noting that Taiwan’s economy is booming thanks to “AI and semiconductor demand.”

• Bank of America BAC +0.76% ▲ : Sachin Salgaonkar reiterated a Buy rating with a $6.20 target, calling the acquisition “directionally positive” for the company’s risk-reward profile.

Deal Creates Direct Competition with Uber

Grab is now set to compete directly with Uber Eats UBER +1.66% ▲ after acquiring foodpanda Taiwan, a business that generated $1.8 billion in sales last year. This deal is the company’s first expansion outside of Southeast Asia. Interestingly, Uber holds a 13.5% stake in Grab, but the two have never competed in the same market until now.

Analysts believe Grab’s entry is a win for consumers, as the company plans to use “AI-powered tools” to improve the delivery experience in Taiwan’s under-indexed regions. Full platform migration to the Grab app is expected by early 2027.

Is Grab a Good Stock to Buy?

Turning to TipRanks, Wall Street has a Strong Buy consensus rating on GRAB stock based on 12 unanimous Buys. The average 12-month GRAB stock price target of $6.63 indicates 82.2% upside potential.

See more GRAB analyst ratings

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