Instacart Upgraded to Buy by Benchmark Analysts

Benchmark upgraded Instacart to Buy from Hold with a $67 price target, citing Q2 results and outlook that suggest the company is riding a secular tailwind despite not sustaining category share. The analyst believes Instacart will benefit from competitive pressures facing regional/smaller grocers, making the trend sustainable.

Benchmark has upgraded Instacart stock to a Buy rating with a $67 price target, reflecting the company's robust Q2 performance and promising outlook [1]. Instacart's parent company, Maplebear (CART), reported second-quarter revenue growth and earnings ahead of estimates, with adjusted earnings per share (EPS) of 41 cents, up 105% from a year earlier [1]. Sales increased 11% to $914 million, surpassing analyst projections of $896 million [1].

The company's gross total value of transactions on Instacart's grocery delivery marketplace grew 11% to $9.08 billion, beating analyst estimates of $8.94 billion [1]. For the current quarter, Instacart expects a gross transaction value of roughly $9.075 billion, which also exceeded analysts' forecasts [1].

Maplebear Chief Executive Fidji Simo highlighted the company's strong performance, attributing it to innovative technologies that enhance ease of use and affordability [1]. The call marked Simo's final one as the leader of Maplebear, as she is joining OpenAI to lead its applications business [1].

Instacart's stock has outperformed the S&P 500 this year, with a 19% gain heading into Friday trading, and is up 53% compared to 12 months ago [1]. Despite concerns about consumer spending due to tariffs and a weak July employment report, Instacart's strong growth, along with that of Uber Technologies (UBER) and DoorDash (DASH), points to steady demand for app-based food and grocery delivery [1].

Benchmark's upgrade reflects the analyst's belief that Instacart will benefit from competitive pressures facing regional and smaller grocers, making the trend sustainable [1]. The analyst's rating was previously Hold, but the upgrade indicates a positive outlook on the company's growth prospects.

References:
[1] https://www.investors.com/news/technology/instacart-stock-q2-2025-earnings-cart-maplebear/