From Yahoo Finance: 2025-03-29 11:02:00

Southeast Asia’s digital economy is thriving, with Grab Holdings (GRAB) emerging as a top investment option. The Singapore-based super app covers mobility, deliveries, and financial services, showing signs of profitability with a strong cash reserve and potential M&A opportunities.

Grab has transformed into a vital ecosystem for over 680 million users across eight Southeast Asian nations. Recent reports show a 17% revenue increase to $764 million and $11 million profit, marking a significant shift from its cash-burning days.

Grab’s financial health is robust, with no debt, $6 billion in cash reserves, and a path to positive EPS by 2025. Expected revenue growth to ~$3.4 billion in 2025 and expanding margins hint at promising operating and free cash flow margin expansion.

Despite its growth trajectory, Grab trades at an “Asia discount” compared to Western tech stocks, with a P/S ratio of 5.7. The company’s financial services arm is tapping into an unbanked market, hinting at further growth potential.

With a $6 billion cash reserve, Grab is in a strong position for strategic moves like a potential merger with GoTo, creating a regional powerhouse. The company’s partnerships and focus on financial services present overlooked opportunities for investors.

Wall Street sentiment on Grab is positive, with a Strong Buy consensus and an average price target of $5.65 per share, implying a 22.5% upside potential. The stock’s transformation into a profitable super app company and M&A prospects make it an attractive investment in Southeast Asia.



Read more at Yahoo Finance: Southeast Asian Stock Gem Set to GRAB U.S. Investor Attention