Jefferies lifted its price target on Instacart (NASDAQ:CART) to $50 from $48, maintaining a Hold rating as analysts see upside in gross transaction value (GTV) but remain cautious on margin visibility.
The firm’s updated cohort analysis suggests Instacart is on track to meet consensus GTV estimates, with potential for further upside tied to incremental contributions from Uber Eats. As a result, Jefferies raised its financial estimates slightly above consensus levels.
Despite the GTV momentum, the firm cited lingering concerns over the company’s profitability outlook. Recent investments in affordability and marketing efforts, along with a slower-than-expected ramp in high-margin advertising revenue, have clouded near-term margin expansion potential.
Jefferies remains on the sidelines, awaiting greater clarity on Instacart’s monetization strategy before turning more constructive on the stock.