What Does Wall Street Think About Grab Holdings Limited (GRAB)?

Grab Holdings Limited (NASDAQ:GRAB) is one of the best strong buy stocks to invest in under $5. BofA upgraded Grab Holdings Limited (NASDAQ:GRAB) to Buy from Neutral on January 19, keeping the price target unchanged at $6.30 and citing valuation for the upgrade after the stock’s recent underperformance.

The firm stated that the fundamentals of the company’s core mobility and deliveries business remain strong in a backdrop of low competition and stable-to-improving margins, and believes that Grab Holdings Limited’s (NASDAQ:GRAB) potential buyback limits the stock’s downside risk. BofA sees a favorable risk/reward after the selloff, with a “disconnect” between the company’s fundamentals and valuation.

In another development, HSBC also upgraded Grab Holdings Limited (NASDAQ:GRAB) to Buy from Hold with a price target of $6.20, citing valuation for the upgrade. The firm stated that the company’s valuation has “turned attractive” after the recent selloff, with Street’s expectations coming down. HSBC believes that Grab Holdings Limited’s (NASDAQ:GRAB) growth drivers are intact, and anticipates the company to “continue to strengthen its leadership position due to its ability to continuously roll out innovative and affordable products.”

Grab Holdings Limited (NASDAQ:GRAB) provides millions of consumers access to its merchant and driver partners for food delivery, ride or taxi hailing, package delivery, payment for online purchases, and services such as telemedicine, lending, and insurance through its application.

While we acknowledge the potential of GRAB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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