Grab Holdings Limited (GRAB) Builds Momentum Through Diversification and Innovation

Grab Holdings Limited (NASDAQ:GRAB) is one of the best US stocks to buy under $50. On January 19, BofA Securities upgraded Grab Holdings Limited (NASDAQ:GRAB) to a Buy from a Neutral and reiterated a $6.30 price target. The upgrade comes on the heels of the stock underperforming, as it has slumped 32% since September.

Amid the underperformance, BofA Securities insists the company’s fundamentals in core mobility and deliveries remain strong. In addition, the company is facing minimal competition, backed by stable and improving margins that justify the upgrade. Consequently, the research firm expects Grab Holdings gross merchandise value to grow at a compound annual growth rate of 17% between 2024 and 2027.

Additionally, the firm expects the company’s adjusted EBITDA margin as a percentage of GMV to improve to 5.5% by 2027 from 3.6% as of 2024. The $5 billion net cash position is also seen as a positive, helping limit downside risk amid expected strong performance in GrabMart or quick commerce operations.

Meanwhile, on January 6, Grab announced it would strengthen its first- and last-mile delivery capabilities through the acquisition of China-based Infermove, a developer of AI-enabled robotics solutions. It plans to leverage Infermove’s autonomous robots to enhance customer experiences.

Grab Holdings Limited (NASDAQ:GRAB) is a tech giant operating a super app that provides ride-hailing, food/grocery delivery, GrabFood, GrabMart, package delivery, GrabExpress, and digital financial services, GrabPay, lending, and insurance, all in one platform, connecting consumers with driver-partners, merchants, and delivery partners for everyday needs.

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Disclosure: None. This article is originally published at Insider Monkey.