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Citi starts Grab at “buy” with TP of US$12

Felicia Tan
Felicia Tan12/31/2021 07:51 PM GMT+08  • 3 min read
Citi starts Grab at “buy” with TP of US$12
In a separate report on Dec 23, Yap has assigned a “high risk” rating on Grab.
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Citi Research has initiated coverage on Grab Holdings with a “buy” recommendation and a sum-of-the-parts (SOTP) target price of US$12 ($16.23).

The target price is based on 5.5 times FY2024 revenues for Grab’s delivery business, 15 times FY2024’s adjusted EBITDA for its mobility business, 20 times FY2024 revenue for its financial services arm, three times FY2024 revenue for Grab’s enterprise and new initiatives, and 50% discount on cash, writes analyst Alicia Yap in a Dec 15 report.

Comparing to the other super app platforms in Southeast Asia, Yap believes Grab benefits “from its ability to capture larger volumes of consumer data given the higher frequency of delivery and mobility demand than for ecommerce shopping, suggesting easier cross-sell of financial services products”.

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