Shareholders of Grab Holdings Limited (NASDAQ:GRAB) will be pleased this week, given that the stock price is up 16% to US$4.89 following its latest third-quarter results. It was overall a positive result, with revenues beating expectations by 2.3% to hit US$716m. Grab Holdings also reported a statutory profit of US$0.01, which was a nice improvement from the loss that the analysts were predicting. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Grab Holdings' 22 analysts is for revenues of US$3.33b in 2025. This reflects a huge 24% improvement in revenue compared to the last 12 months. Grab Holdings is also expected to turn profitable, with statutory earnings of US$0.038 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.22b and earnings per share (EPS) of US$0.027 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a great increase in earnings per share in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 12% to US$5.30per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Grab Holdings analyst has a price target of US$8.00 per share, while the most pessimistic values it at US$4.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Grab Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 49% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.7% annually. Even after the forecast slowdown in growth, it seems obvious that Grab Holdings is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Grab Holdings following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Grab Holdings going out to 2026, and you can see them free on our platform here..
Before you take the next step you should know about the 1 warning sign for Grab Holdings that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
