JPMorgan analyst Ranjan Sharma downgraded Grab Holdings to Underweight from Neutral with a price target of $2.80, down from $3.20. The shares are up 64% from the October 2022 lows on expectations of material improvement in the earnings outlook driven by mobility and corporate cost reductions, the analyst tells investors in a research note. However, the firm believes Grab could miss Street earnings estimates, saying the adoption of alternative mobility options present downside risks to gross merchandise volume expectations. It recommends a tactical underweight on the shares on earnings risk.
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