Latest news with #GRAB
Reuters
3 days ago
- Business
- Reuters
Indonesia wealth fund considers stake in Grab-GoTo deal, Bloomberg News reports
June 6 (Reuters) - Newly-launched sovereign wealth fund Danantara Indonesia is in early talks with GoTo ( opens new tab to get a piece of U.S.-listed rival Grab's (GRAB.O), opens new tab potential buyout of the ride-hailing and food delivery firm, Bloomberg News reported on Friday. The fund is seeking a minority stake in the combined entity, which could help ease the Indonesian government's concerns of Singapore-headquartered Grab owning the country's biggest tech firm, the report said, citing people familiar with the matter. Indonesia's antitrust regulator last month started research aimed at identifying risks from a possible deal between the tech giants, who have yet to confirm merger talks. Grab is looking to strike a deal in the second quarter, and could value GoTo at around $7 billion, sources with knowledge of the matter told Reuters last month. The companies have made progress on the structure of the deal, but talks had slowed down recently due to potential regulatory demands, Bloomberg News said. Indonesia launched Danantara in February, aiming to invest in a wide range of projects from metal processing to artificial intelligence. It will hold government stakes in state firms and is intended to operate like Singapore's investment arm Temasek. GoTo declined to comment, while Danantara Indonesia and Grab did not immediately respond to requests for comments.
Yahoo
7 days ago
- Business
- Yahoo
Is It Worth Investing in Grab (GRAB) Based on Wall Street's Bullish Views?
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Grab Holdings Limited (GRAB). Grab currently has an average brokerage recommendation (ABR) of 1.53, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 18 brokerage firms. An ABR of 1.53 approximates between Strong Buy and Buy. Of the 18 recommendations that derive the current ABR, 13 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 72.2% and 11.1% of all recommendations. Check price target & stock forecast for Grab here>>>The ABR suggests buying Grab, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. In terms of earnings estimate revisions for Grab, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $0.05. Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Grab . You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Grab . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Grab Holdings Limited (GRAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
09-04-2025
- Business
- Yahoo
Why Grab Holdings Ltd. (GRAB) Surged On Tuesday?
We recently published a list of . In this article, we are going to take a look at where Grab Holdings Ltd. (NASDAQ:GRAB) stands against other stocks that lead rally amid market bloodbath. The stock market took a battering anew on Tuesday, with all major indices registering steep losses as investors continued to digest President Donald Trump's next tariff deadline that would slap China with a cumulative 104-percent tariff. The tech-heavy Nasdaq registered the heaviest fall, down by 2.15 percent, followed by the S&P 500's 1.57 percent decline, and the Dow Jones' 0.84-percent drop. Meanwhile, 10 companies—four of which were in the medical sector—bucked an overall market decline, booking modest gains during the session. In this article, we listed the 10 well-performing names of Tuesday and detailed the reasons behind their gains. To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume. A customer enjoying the convenience of a mobile financial services transaction. Grab Holdings bounced back on Tuesday, adding 7.18 percent to its valuation to end at $3.73 apiece as investor sentiment was fueled by an investment firm's positive rating for the company. On Tuesday, Citi reaffirmed its Buy rating and a price target of $6.25 on GRAB shares. The new price represented a 67.56-percent upside from the company's closing price on Tuesday. According to Citi, its rating was based on GRAB's product event GrabX 2025 in Singapore where its CEO, Anthony Tan, and Chief Product Officer Philipp Kandal, announced that the company was looking to embrace and integrate Artificial Intelligence into its operations, particularly to enhance its services for drivers and customers. According to Citi, GRAB's ongoing product innovation and proven track record of execution arms the company well to steer through market uncertainties. Overall, GRAB ranks 3rd on our list of stocks that lead rally amid market bloodbath. While we acknowledge the potential of GRAB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GRAB but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
08-04-2025
- Business
- Yahoo
Why Grab Holdings Ltd. (GRAB) Went Down On Monday?
We recently published a list of . In this article, we are going to take a look at where Grab Holdings Ltd. (NASDAQ:GRAB) stands against other Chinese stocks that performed worst on Monday. Wall Street's main indices finished mixed on Monday as investors remained cautious amid the escalating trade tensions globally, with President Donald Trump threatening to slap China anew with a 50-percent tariff if the latter does not withdraw its countermeasure. The tech-heavy Nasdaq was the sole gainer during the day, up 0.10 percent. In contrast, the Dow Jones declined by 0.91 percent and the S&P 500 dropped by 0.23 percent. Meanwhile, 10 companies—predominantly Chinese stocks—were sold down as investors moved away to minimize the potential risks from the trade war. In this article, we have identified Monday's worst performers and detailed the reasons behind their drop. To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume. A customer enjoying the convenience of a mobile financial services transaction. Grab Holdings extended its losses for a third straight day on Monday, shedding 6.70 percent to end at $3.48 each as investors sold off positions to mitigate the risks from the ongoing trade tensions globally. While not directly impacted by the trade war, GRAB recently formed a tie-up with and China's Tencent Holdings in hopes of propping up its revenues. Under the deal, a tourist can now call a ride by pressing the GRAB icon embedded in Tencent's WeChat. The mini program then prompts the user to enter the destination. With the escalating trade war between the US and China, any impact on Tencent Holdings could potentially affect GRAB, which operates in 480 cities across eight countries in the region, where the WeChat feature can be used. Tencent charges Grab a fee for its service. Overall, GRAB ranks 9th on our list of Chinese stocks that performed worst on Monday. While we acknowledge the potential of GRAB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GRAB but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Southeast Asian Stock Gem Set to GRAB U.S. Investor Attention
Southeast Asia's digital economy is booming, and Grab Holdings (GRAB) has quietly positioned itself as a top investment for those seeking non-U.S. exposure in their portfolios. Covering mobility, deliveries, and financial services, the Singapore-based super app is gradually crawling toward profitability while boasting a cash reserve that provides a significant margin of safety and M&A opportunities. Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. GRAB sports nimble financials as part of an astute broader market strategy, which has not yet been noticed by a wider audience. Moreover, the stock remains deeply undervalued due to an 'Asia discount' that may translate to substantial gains despite shares already surging 53% over the past year. I'm leaning bullish on this Southeast Asian tech gem despite macro and political headwinds. No one can argue against the fact that Grab has come a long way. From an up-and-coming ride-hailing player, it has steadily grown into an irreplaceable ecosystem for over 680 million people across eight Southeast Asian nations. In its latest report, the company celebrated a 17% revenue increase to $764 million and an $11 million profit, marking a pivotal shift from its cash-burning days. Full-year free cash flow reached $136 million, a monumental improvement from a negative $234 million last year, with the company now starting to stack on the balance sheet and creating meaningful shareholder value. Looking deeper into the financials, Grab's balance sheet is stellar. With virtually no debt, $6 billion in cash (about a third of its current market cap), a clear path to positive EPS in 2025, and free cash flow in the green, GRAB's bustling net position is set to grow. In fact, we should see free cash flow surging as its margins expand with scale. Revenue is projected at ~$3.4 billion for 2025, implying a growth of ~20% and setting up prospects of a robust operating and free cash flow margin expansion. The fascinating aspect of Grab's bullish investment case is that the stock trades with an 'Asia discount.' Historically, Western investors often undervalue Asian tech stocks (and GRAB is trading on the Nasdaq), tend to be incredibly cautious about regulatory risks or competition and assign notably lower multiples than their American peers. For context, Grab's P/S ratio is 5.7, higher than Uber's 3.1, but a bargain given its momentous growth trajectory. Grab's Q4 GMV hit $5 billion (up 20%), and its financial services arm, offering payments and even micro-loans now, is tapping into a massive unbanked market. Yet, the stock's priced as if it's still a speculative venture. On the contrary, consensus estimates see free cash flow skyrocketing to $513 million this year. Grab's $6 billion cash reserves could prove highly useful in this context as the company could fund share buybacks, innovation, and/or a transformative acquisition. With GRAB's $6 billion war chest now common knowledge, speculators are busy wondering how Grab plans to deploy it. Earlier this month, reports emerged of revived talks of a Grab merger with rival GoTo, where the combined company forms a $7 billion-plus powerhouse. Of course, antitrust challenges could complicate the deal, but if successful, I think it's safe to say that Grab's regional dominance would strengthen significantly. But even without the deal, Grab is still making real advancements. Its partnership with Amazon Web Services boosts its tech backbone, while a BYD deal for 50,000 electric vehicles should cut costs and allow for extra scale. In the meantime, the financial services segment is quietly outpacing mobility, so I view it as an overlooked asset that investors can acquire along with the core business. Beyond the Asia discount, sentiment has been lukewarm. Last quarter didn't trigger a noteworthy buyback despite that cash, while takeover targets like GoTo and Foodpanda keep the pressure on. That said, Grab's economic footprint is undeniable. The company is adding 1% to Thailand's GDP and 0.5% to Malaysia's, per recent studies. In the meantime, the stock is trading at just 35x this year's expected free cash flow. In another context, this would be a pricy multiple, but with free cash flow now positive and accelerating, it is a modest one. It's also worth noting that excluding its existing cash, Grab's P/FCF falls to just 27x. Looking at Wall Street's sentiment on the stock, GRAB features a Strong Buy consensus rating based on 10 Buys and two Holds assigned in the past three months. GRAB's average price target of $5.65 per share implies approximately 22.5% upside potential over the next twelve months. Grab's transformation into a profitable, cash-flush super app company makes it a Southeast Asian standout opportunity at current price levels. The stock's Asia discount suggests it remains undervalued, just as 2025 is projected to become another year of incremental revenue growth, margin expansion, and cash growth. In the meantime, the potential for M&A fireworks is growing, but even if the deal with GoTo doesn't materialize, the upside feels significant at ~$4.50 per share. The safety net is also broad, given the cash-rich balance sheet and already pessimistic sentiment surrounding the stock. Disclosure Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
