Loop Capital analysts started covering Instacart (NASDAQ:CART) with a Buy rating and a $46 price target on the stock. The analysts noted that Instacart leads the U.S. grocery delivery market significantly and is increasing its market share. The company has reported profitability on a GAAP basis and positive EBITDA for the past four years, with adjusted EBITDA growing 2.4 times last year and a 21% adjusted EBITDA margin.
While competitors like DoorDash and Uber are expanding into convenience and supplementary item delivery, they have not significantly impacted Instacart’s dominance in core grocery deliveries. The analysts find Instacart’s stock appealing, trading at a 40% discount compared to gig-economy peers based on 2025 EBITDA projections. They anticipate growth acceleration in the upcoming quarters to potentially narrow this valuation gap. The $46 price target is based on 15 times the projected 2025 adjusted EBITDA, which the analysts view as a conservative estimate assuming Instacart maintains its market leadership.