Grab Earnings: Raising Fair Value by 11% As Revenue Reacceleration Expected in 2025

We raise our fair value estimate for Grab by 11% to $5.10 per share from $4.60, after it posted third-quarter revenue of $716 million, an 18% year-on-year increase. The firm also generated positive adjusted operating income for the first time in its history of $16 million, and more importantly, it raised its outlook for the rest of 2024 and expects further revenue reacceleration in 2025. Grab expects reacceleration to be driven by robust growth of its lending portfolio, increasing frequency in transactions of its Grab Saver business, and growth of its nonfood deliveries. In addition, mobility services remain in demand as the company is seeing greater demand from some of its lower-tier customers.