Potential acquisition target for Uber, undervalued stock

  • Instacart stock extends rally after analyst coverage
  • Buy rating and $32 target price from Benchmark analyst
  • Stock up 13% this year, potential acquisition target for Uber
  • Analyst believes stock undervalues free-cash-flow outlook and addressable market
  • Slowing revenue growth priced into shares, potential for better-than-consensus profits

Instacart shares continue to rally as Benchmark analyst Mark Zgutowicz initiates coverage with a Buy rating and $32 target price. Despite concerns about competition and growth outlook, the stock has gained 13% this year. Wolfe Research analyst suggests Instacart could be a good acquisition target for Uber. Zgutowicz believes the stock undervalues its free-cash-flow outlook and addressable market. He also highlights the potential of the company’s nascent advertising business. The slowing revenue growth is already priced into the shares, and Zgutowicz expects better-than-consensus profits for the December quarter due to reduced operating expenses.

Public Companies: Instacart (N/A), Amazon.com (N/A), Walmart (N/A), Uber Technologies (N/A), DoorDash (N/A)
Private Companies: Maplebear
Key People: Mark Zgutowicz (Benchmark analyst)

Factuality Level: 7
Justification: The article provides information about Instacart’s recent rally, analyst coverage, stock performance, and potential profitability. However, it lacks in-depth analysis and fails to address the speculation about a potential takeover of the company.

Noise Level: 3
Justification: The article provides a brief overview of Instacart’s recent stock performance and analyst coverage. However, it lacks in-depth analysis, evidence, and actionable insights. It also includes irrelevant information about the company’s name and the text-to-speech technology. Overall, the article contains some noise and filler content.

Financial Relevance: Yes
Financial Markets Impacted: Instacart shares

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the coverage launch of Instacart by Benchmark analyst Mark Zgutowicz, which has led to an extended rally in Instacart shares. It also mentions the speculation about Instacart being a good acquisition target for Uber. However, there is no mention of any extreme event or its impact.

Reported publicly: www.marketwatch.com