Buy Grab for Asymmetrical Upside from Merger and Profitability Growth

22 days ago

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"Now for my valuation model I took in the 15 cents of earnings per share expected for 2027 and I put it in this calculator. I would get 33 cents earnings per share in 2030. So, I take in 33 cents and I time it by 30 times earnings, which is more than a 50% multiple contraction from the current multiple, which I still believe is fair. This is around $9.90 of a price target over the next 5 years. The stock right now is trading at about $5 per share. This is about 98% on the upside over the next five years, excluding the merger, which would be a gamecher for Grab. So, I really like this setup very very much."

The analyst presents a clear trade call for Grab, highlighting its turnaround story and merger call option. He emphasizes that Grab's improved profitability and its potential merger with competitor Goto could lead to significant upside. A detailed valuation model gives a price target of about $9.90 over the next 5 years, nearly doubling the current price, affirming a strong bullish stance.

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