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The Rise of GRAB: Envisioning a Bright Future in Emerging Markets

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In a recent analysis, Benchmark analyst Fawne Jiang reaffirmed a Buy rating on Grab Holdings (GRAB) with a price target of $6, citing the company’s profound strides in the market. GRAB’s latest financial report not only surpassed expectations but also marked its inaugural group-level profitability, demonstrating a steadfast commitment to sustainable growth.

Jiang emphasizes GRAB’s competence in providing affordable services, a pivotal advantage in the region’s competitive landscape. As a super-app, tech-innovator, and multi-region operator, GRAB efficiently manages costs while ensuring competitive pricing and robust earnings for its partners, as evidenced by the resilient growth of on-demand GMV in the third quarter despite reduced incentives.

Regardless of macroeconomic uncertainty, Jiang maintains optimism about GRAB’s potential to expand its market share, barring significant new competitors. The barriers to entry in mobility and delivery, coupled with the strategic significance of local knowledge, position GRAB as a formidable player in the market.

Moreover, Jiang regards GRAB as a pivotal player in market consolidation in the Southeast Asia region and recommends the stock as a core investment for emerging market opportunities. He has revised the FY23 revenue estimate to $2.34 billion (versus $2.30 billion previously), implying a remarkable 63% year-over-year growth, and adjusted EBITDA to $(20) million (versus $(38) million previously).

Despite this positive outlook, GRAB shares experienced a marginal decline of 0.47%, trading at $3.28 during the latest check on Friday.

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