Instacart initiated with neutral view at Jefferies, here’s why

Jefferies analyst John Colantuoni initiated coverage of Instacart with a Hold rating and $43 price target. Instacart is a leading player in online grocery delivery, with exposure to a massive $1.3 trillion end market that is still early in its shift to digital, the analyst tells investors in a research note. However, the firm thinks further share losses are likely to cap the company’s volume growth and upside to consensus estimates, while a recent stagnation in advertising penetration reduces visibility into its margin outlook. Jefferies says Instacart’s “attractive category exposure is offset by share losses and a murky profit outlook.”