Bernstein analyst Venugopal Garre has lowered the price target on Grab Holdings Inc. to $5.80 from $6.60 but left the stock with an Outperform rating. Market data show Grab is trading at $4.59, and analyst targets across the street run from $5.60 to $8.00.
The revision reflects expectations for compressed margins as the Southeast Asian technology company channels capital into growth initiatives designed to expand its total addressable market. Bernstein reduced its calendar year 2025-2026 net income estimates by between 2% and 5.6% to incorporate the near-term earnings impact of these investments. The firm nevertheless expressed the view that these initiatives should deliver incremental value after a couple of years.
Performance metrics underline the company’s recent top-line momentum. According to available data, Grab posted 20.18% revenue growth over the last twelve months, and analysts project roughly 22% revenue growth for fiscal year 2025. At the same time, valuation metrics show a mixed picture: Grab’s trailing price-to-earnings ratio sits at a high 302, while its PEG ratio of 0.84 indicates a valuation that may be more defensible when adjusted for expected growth.
Bernstein identified several strategic execution areas it believes would strengthen Grab’s returns from current investments. The analyst urged the company to accelerate its roll-out in on-demand grocery, deepen partnerships to advance autonomous vehicle deployment, incorporate Agentic AI to enhance food-delivery operations, and take a more assertive approach toward fintech expansion. Where ongoing investments produce limited synergies, Bernstein suggested Grab consider monetizing prior stakes via partnerships or strategic exits.
Recent third-quarter 2025 results bolstered some market views. Grab beat consensus on both revenue and earnings and exceeded key growth benchmarks for the quarter. That performance prompted Benchmark to lift its price target from $6.00 to $7.00 while maintaining a Buy rating. Separately, Bernstein SocGen Group raised its price target to $6.60 from $5.60, citing steady earnings and the company’s strong market position. BofA Securities moved its rating from Neutral to Buy, calling attention to the company’s solid fundamentals despite recent underperformance.
Benchmark reiterated its Buy stance and highlighted a constructive outlook for fiscal year 2026, particularly in the Deliveries and Mobility segments. In parallel with these analyst updates, Grab adjusted its board composition: Laura Franco was appointed as an independent director and Ng Shin Ein retired from the board.
The sequence of analyst changes, earnings beats, and governance moves illustrates the market debate around investing for faster growth versus protecting near-term margins. Bernstein’s downgrade of the price target reflects a conservative stance on near-term profitability while still recognizing the potential upside if the company’s strategic pushes achieve the expected scale and synergy benefits over time.