Bank of America Securities Remains Bullish on Grab Holdings Limited (GRAB) Post Earnings

Grab Holdings Limited (NASDAQ:GRAB) is one of the best strong buy penny stocks to invest in. Grab Holdings Limited (NASDAQ:GRAB) received a rating update from Bank of America Securities on February 12, with the firm maintaining a Buy rating on the stock with a price target of $6.20. The rating update came the same day Grab Holdings Limited (NASDAQ:GRAB) announced unaudited financial results for the fourth quarter ended December 31, 2025, reporting fiscal Q4 2025 revenue of $906 million, up 19% year-over-year.

On-demand GMV for the quarter rose 21% year-over-year to a record of $6.1 billion, while profit for the period reached $153 million, with adjusted EBITDA rising 54% year-over-year to $148 million. Management reported that fiscal Q4 2025 was a record quarter for Grab Holdings Limited (NASDAQ:GRAB), with it delivering its first full year of net profit and crossing 50 million Monthly Transacting Users.

Building on this solid foundation, Grab Holdings Limited (NASDAQ:GRAB) expressed an optimistic long-term financial outlook, stating that it expects to generate $1.5 billion in adjusted EBITDA with an adjusted free cash flow conversion of 80% by 2028.

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.