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CGS International maintains ‘add’ call on Grab amidst slower ebitda growth in 2QFY2024

Ashley Lo
Ashley Lo • 3 min read
CGS International maintains ‘add’ call on Grab amidst slower ebitda growth in 2QFY2024
FY2024 ebitda forecast remains at US$272 million, as per the analysts' estimates. Photo: Bloomberg
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CGS International analysts Ong Khang Chuen and Kenneth Tan have kept their “add” call on Grab Holdings at an unchanged target price of US$4.30 ($5.76) amid slower ebitda growth in 1QFY2024. 

Ahead of the release of Grab’s 2QFY2024 results in mid-August, the analysts estimate that the group has achieved a “healthy” on-demand gross merchandise value (GMV) of US$4.4 billion in the same period, reflecting a 4% q-o-q and 12% y-o-y increase. 

Despite Grab’s deliveries segment GMV increasing by 6% q-o-q due to its rebound following the earlier timing of the Ramadan fasting period, its mobility segment GMV stood flattish q-o-q after major concerts in Singapore boosted growth in 1Q2024.

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