“We like Grab for its strong regional presence with market leadership across its key segments and its superapp strategy to tap on rapid Southeast Asia digitalisation which could open up further potential growth in total addressable market through new segments.
CGS-CIMB Research analysts Ong Khang Chuen and Kenneth Tan have initiated coverage on Grab with an “add” rating with a sum of the parts (SOTP)-based target price of US$3.60 ($4.97).
The analysts' valuations include US$1.60 per share for the on-demand services (deliveries and mobility), 50 US cents per share for the financial services segment and 40 US cents per share for the enterprise and new initiatives segment. The target price implies 4.9x FY2023 P/adjusted sales.
