This Uber rival could deliver 15% gains in 2025 despite Q4 miss: here’s why

Recent pullback in Grab Holdings Ltd (NASDAQ: GRAB) looks overdone and the probability of a swift recovery looks rather high, according to Ranjan Sharma – a JPMorgan analyst.The ride-sharing and food delivery company reported a disappointing fourth quarter this week and issued muted guidance for the full year, which resulted in a more than 10% hit to its share price.Still, the investment firm remains convinced that Grab stock will pick right up in the months ahead. Sharma’s $5.60 price target on the Uber rival suggests an upside potential of nearly 15% from current levels.Grab’s outlook could prove to be conservativeGrab cited intense competition as it guided for $3.33 billion and $3.40 billion in revenue for 2025. Analysts, in comparison, were at $3.39 billion.Still, the JPM analyst recommends loading up on shares of the Singapore-based company as its “guidance could prove conservative”. Investors should note that Grab came in ahead of its earnings guidance both last year as well as the year before.“With investor expectations anchored to the guidance, we believe earnings delivery over the year will likely drive positive revisions in earnings expectations,” Sharma argued in a recent report.That said, Grab stock is not a suitable pick for income investors as it doesn’t currently pay a dividend.Grab stock could benefit from an increase in MTUsJPMorgan remains positive on Grab shares also because the ride-sharing and food delivery platform is seeing a continued increase in its monthly transacting users.Later in the year, that could translate to earnings upside, according to Ranjan Sharma.With a reduction in costs that can be passed on to consumers, and initiatives to grow affordable services, we believe the growth in MTU should expand the addressable market and grow mid-term earnings.The analyst recommends buying the dip in Grab stock price also because of its expanding footprint in the high-growth advertising business. Versus its 52-week low, the Nasdaq-listed firm is currently up some 60%.Are Grab shares worth buying in 2025?Grab saw $407 million in revenue from deliveries in its fiscal fourth quarter – marginally below the $408 million that analysts had called for. Its mobility revenue also missed estimates in Q4.Earlier in February, reports surfaced that the ride-sharing and food delivery firm was in talks with GoTo over a possible merger aimed at improving market share.At the time, Peter Oey, its chief executive said “Grab does not comment on media speculation or rumours,” adding the US-listed firm has set the bar really high for M&A. GoTo later confirmed that it’s not in discussions over a possible merger with Grab.Note that Grab stock has been having a hard time in the post-pandemic world. It’s going for under $5.0 at writing versus close to $17 in early 2021.The post This Uber rival could deliver 15% gains in 2025 despite Q4 miss: here's why appeared first on Invezz