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Shares of Grab Holdings (NASDAQ:GRAB), the Southeast Asian ride sharing and food delivery co. that went public in December through a de-spacing deal, fell 6.6% despite a new buy rating at Goldman Sachs.
GRAB was initiated with a buy rating and a price target of $7.90/share (36% upside) according to Goldman analyst Pang Vittayaamnuaykoon. Goldman's bull-bear case scenario suggest 114% upside and 42% downside.
"We see Grab as the beneficiary of the growing Southeast Asia internet economy, where increased urbanization, rising mobile/internet penetration, digitization of services and consumption, and a large under-banked population form a US$160bn TAM," Vittayaamnuaykoon wrote in a note.
Some key risks that Goldman sees for Grab include higher than expected competition, regulatory changes and an economic slowdown.
Grab shares have plunged more than 50% since going public after the de-spacing deal in early December. The GRAB deal was the largest-ever U.S. equity offering by a Southeast Asian company. The SPAC deal provided Singapore-based Grab with ~$4.5B in cash proceeds
Earlier this week, Grab Holdings drops despite new overweight rating at Morgan Stanley.