Grab Holdings could be due for a recent bout of weakness, according to HSBC. The firm upgraded the Singapore-based ride sharing and food delivery application developer to buy from hold, albeit with a lowered price target of $5.45 per share from $5.50. HSBC’s forecast still calls for 20% upside from Monday’s close. Analyst Piyush Choudhary highlighted Grab’s ability to innovate in key markets and its potential growth initiatives that can help the firm expand its total addressable market. GRAB 1Y mountain Grab Holdings stock. “We continue to think Grab should be able to strengthen its leadership position in key categories (ride hailing and deliveries) due to its ability to continuously roll out innovative and affordable products,” Choudhary said. “We think the company’s investment into various products will help to expand its total addressable market with more affordable solutions, and margins will improve with increased contribution from high-value offerings, scale and advertising revenue.” The analyst noted that the stock has dropped roughly 15% over the past two months, which could present a buying opportunity for investors. “We think valuations have become attractive after the recent price correction,” Choudhary said. Shares have gained climbed about 41% over the past year. However, they have dipped more than 5% over the past month. The stock popped more than 7% following the upgrade. Analysts are generally bullish on the stock. LSEG data shows that of the 25 analysts who cover Grab, 21 rate it a buy or strong buy. The remaining four have a hold rating on it.
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