HSBC Upgrades Grab to Buy, Sees Over 45% Upside as Southeast Asia's Super App Gains Traction
In a significant vote of confidence for Southeast Asia's leading super app, HSBC has upgraded Grab Holdings Limited (NASDAQ: GRAB) from 'Hold' to 'Buy'. Analyst Piyush Choudhary set a price target of $6.20, suggesting substantial upside from current trading levels.
The upgrade, reported by TheFly on January 16, points to an attractive valuation following a recent sector selloff and lowered Street expectations. Choudhary argues that Grab's core growth drivers remain intact. As the Singapore-based firm cements its market leadership, it is poised to continue rolling out innovative and affordable products across its vast ecosystem.
The market has responded positively. In the week leading up to January 27, GRAB shares jumped nearly 5%, significantly outperforming broader indices. The stock's 2.85% gain on Thursday handily beat the S&P 500's 0.41% and the Nasdaq's 0.91% advances.
This optimism is echoed across Wall Street. Of the 30 analysts covering the stock, a overwhelming 28 maintain a 'Buy' rating. The median price target sits at $6.95, implying a potential surge of over 46% from recent prices.
All eyes are now on Grab's fourth-quarter 2025 earnings, scheduled for February 12. Wall Street anticipates earnings per share of $0.01, down from $0.02 a year ago, but expects robust revenue growth. The average revenue estimate is approximately $940.6 million, which would represent a year-over-year increase of more than 23%.
Grab's 'super app' strategy—integrating deliveries, mobility, financial services, and more into a single platform—has made it a dominant force in Southeast Asia's digital economy. The upcoming earnings will be a key test of its path to sustainable profitability.
Investor Voices: A Mix of Confidence and Caution
"This upgrade validates my long-term thesis," says David Chen, a portfolio manager at a Singapore-based fund. "Grab isn't just a ride-hail company anymore; it's a foundational tech platform for the region's growing middle class. The financial services segment, in particular, is a massive future revenue driver."
Offering a more tempered view is Sarah Wilkinson, an independent retail investor from Kuala Lumpur. "I use Grab every day and believe in the service, but as a shareholder, I need to see consistent profits. The revenue growth is impressive, but the declining EPS estimate gives me pause. I'm waiting for clearer signs of bottom-line improvement."
Striking a sharply critical tone is Marcus Thorne, a vocal financial blogger. "This is classic Wall Street hype. They downgrade on weakness, then upgrade after a pop, chasing momentum. A 'super app' is just a fancy term for a company that burns cash in multiple businesses instead of one. Show me the money—real, sustained profits—not just user growth stories and price target upgrades from banks that likely want their business."
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Disclosure: This analysis is based on publicly available information and is for informational purposes only. It is not investment advice.