0851 GMT - Grab is poised to post solid earnings growth in 3Q as margins improve, HSBC analysts say. They expect the ride-hailing firm's adjusted Ebitda to rise 47% on year in 3Q, led by a 22% increase in gross merchandise value. They think Grab could raise Ebitda guidance, "as the outlook across segments remains robust with strong user/GMV growth." Longer term, user engagement will likely continue to improve thanks to new product initiatives and Grab's addressable market will expand via more affordable offerings. As margins grow on increased contributions from high-value offerings, scale and ad revenue, HSBC sees adjusted Ebitda expanding at a 53% CAGR over 2024-2027. It keeps a hold rating and US$6.20 target on the stock, viewing it as fairly valued. (jason.chau@wsj.com)
(END) Dow Jones Newswires
October 21, 2025 04:51 ET (08:51 GMT)
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