Why Are Grab Holding Shares Trading Higher Friday - Grab Hldgs (NASDAQ:GRAB)

Grab Holdings Ltd GRAB shares are trading higher Friday as analysts rerated the stock post its upbeat first-quarter results.
On Thursday, Grab reported first-quarter FY23 revenue growth of 130% year-on-year to $525 million, beating the consensus of $490.1 million driven by growth across segments. EPS loss of $(0.06) is in line with the consensus.
Benchmark analyst Fawne Jiang reiterates Grab with a Buy and a $4 price target.
GRAB beat 1Q23 solidly, guided up FY23 adjusted EBITDA, and reconfirmed the group to break even at 4Q23.
The stock impresses the analyst via its solid execution, including 1) meaningful reduction of incentives while sustaining growth at a robust level; 2) effectively growing driver supply in a tight labor market; 3) adoption of innovative targeted saving programs that stimulated demand without sacrificing monetization and profitability.
The quarter testified to strong operational execution underpinned by deep local markets know-how and committed tech innovation, core competencies of GRAB.
Jiang continues to regard GRAB as a market consolidator in Southeast Asia, with the group breakeven as a potential rerating catalyst.
The company noted a strong growth trend QTD in mobility, benefiting from reopening and growing international travels, while delivery saw a healthy rebound post-holidays. The efficiency improvement coupled with effective cost control has sustained and driven rising profitability in delivery while narrowing Fintech loss.
Looking ahead, with growing inbound travels and rising local mobility, the analyst boosted the firm's estimates on the stock.
HSBC analyst Piyush Choudhary maintains Grab with a Buy and raises the price target from $4.03 to $4.2.
Bernstein analyst Venugopal Garre maintained a Buy rating on Grab with a price target of $4.30.
Citi analyst Alicia Yap maintained a Buy rating on Grab and set a price target of $4.80.
Price Action: GRAB shares traded higher by 3.83% at $2.85 on the last check Friday.
Photo via Wikimedia Commons

Market News and Data brought to you by Benzinga APIs