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Grab stock price: Are GRAB shares a bargain as Asian tech group eyes 2024 profit

By Jenny McCall

12:34, 28 September 2022

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GRAB
Grab Holdings Limited
3.0387 USD
0.1648 +5.810%
UBER
Uber
28.77 USD
1.06 +3.850%
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A image of Grab delivery drivers
But some analysts still see GRAB as a high-risk investment - photo: Getty Images

Singaporean multinational technology company Grab Holdings Limited (GRAB) announced on Tuesday that it expects revenue to slow but 2024 will be a key year for the group, when it expects to see some profitability. 

The ride hailing company, which allows consumers to order transportation, food  and deliveries via an app and competes with the likes of Uber (UBER), said it expects revenue growth of 45% to 55% in 2023. The SoftBank-backed group is forecasting that things will turn around by 2024.

So, are GRAB shares a bargain right now as it forecasts profit in 2024?

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Grab Holdings Limited (GRAB) share price chart

GRAB a bargain...or a liability

GRAB's stock price is currently down 61% this year and in the last four weeks it has dropped by 10%. Could investors now be thinking that given its current low price, perhaps now is good time to buy before the stock goes up, as it heads towards profitability?

Grab (GRABhad its first investor day on Tuesday and said that it is currently South-East Asia’s superapp and went from operating in one country in 2012 to eight countries in 2022 and is now available in over 480 cities.

“Our second quarter results showed that we can grow sustainably. We delivered strong revenue and GMV growth, while improving our unit economics and strengthening our category leadership position across key segments in the region,” Anthony Tan, Group Chief Executive Officer and Co-Founder of Grab (GRAB) said in a statement.

“We took action in the quarter to exit some lines of businesses that do not lead to long-term and sustainable growth. We will continue to optimize our cost structure in order to quicken our path to profitability.”

US100

11,877.20 Price
+3.220% 1D Chg, %
Long position overnight fee -0.0166%
Short position overnight fee 0.0059%
Overnight fee time 22:00 (UTC)
Spread 1.9

XRP/USD

0.41 Price
+1.820% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.00399

Natural Gas

6.97 Price
-4.680% 1D Chg, %
Long position overnight fee 0.0486%
Short position overnight fee -0.0751%
Overnight fee time 22:00 (UTC)
Spread 0.005

BTC/USD

17,092.00 Price
+3.600% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 66.00

According to Bloomberg, analyst are bullish on Grab (GRAB) and have a consensus target price of $4.74 (£4.45) per share – indicating approximately 70% upside.

As of June 2022, analyst see Grab's revenues in 2025 at $4.55bn, which would equal a three year CAGR of approximately 30%, from 2022 to 2025.

But some analysts still see GRAB as a high-risk investment.

Uber (UBER) share price chart

If GRAB can capture a large part of the South-East Asian market, the stock could be valued at more than $100bn, but if this doesn’t happen, it could be hard to sustain the business.

Analysts at MarketBeat, have given the stock a ‘moderate buy’ rating, The company's average rating score is 2.60, and is based on 10 buy ratings, 4 hold ratings, and 1 sell rating.

“Consensus price target of $5.55, Grab (GRAB) has a forecasted upside of 104.2% from its current price of $2.72,” MarketBeat analysts said.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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