Smartkarma · · 1 min readGrab shares to rise with recovery in mobility expected in Q4: report
Southeast Asian super app Grab‘s shares are expected to rise after it announces its fourth quarter results tomorrow as the firm sees a gradual recovery for its mobility business, according to a SmartKarma report.
“As most of the countries in Southeast Asia open up economies with Omicron-related fears fading, we expect a gradual recovery in its mobility business, which should help re-rate Grab’s shares upwards,” wrote LightStream Research analyst Shifara Samsudeen. The report added that the company’s mobility business has not yet recovered to pre-pandemic levels.
Grab is currently trading at US$5.80 per share, more than 50% below its IPO price of US$13.06 per share.
Last November, Grab posted a revenue of US$157 million for the third quarter of 2021, down 9% from the same period in the year prior. The company attributed much of the drop in its topline to reduced mobility in Vietnam, which had enforced severe lockdowns amid the Covid-19 pandemic.
The super app also said that its reported revenue for Q3 2021 was net of consumer, merchant, and driver-partner incentives.
See also: Grab shares may drop further as more stocks flood the market
Editing by Samreen Ahmad and Lorenzo Kyle Subido
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