Home News Broker's Calls

DBS and Maybank lower Grab's TP to US$2.93 and US$4.23 respectively following 1QFY2022 results

Khairani Afifi Noordin
Khairani Afifi Noordin5/23/2022 03:32 PM GMT+08  • 3 min read
DBS and Maybank lower Grab's TP to US$2.93 and US$4.23 respectively following 1QFY2022 results
Grab’s 1QFY2022 total adjusted EBITDA loss of US$287 million was higher than DBS’s expectations of US$200 million. Photo: Grab
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

DBS Group Research analyst Sachin Mittal has maintained “hold” on Grab with a decreased target price of US$2.93 — 47% lower than the previous US$5.60.

Mittal explains that the lower target price is due to DBS revising its valuation metrics to 2.8x 12-month forward enterprise value (EV) to revenue. This is in line with Grab’s global peers Uber and Doordash, which are trading at 12-months forward EV to revenue of 2.8x and 1.4x respectively.

“We have applied the higher multiple of 2.8x as Grab dominates in both food delivery and mobility segments across Southeast Asia and offers superior revenue growth. However, both Uber and Doordash generate positive adjusted EBITDA while Grab may take at least 24-months to reach positive adjusted EBITDA in our view,” says Mittal.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now