Grab Holdings is set to see a significant turnaround in its financial services segment, with losses anticipated to narrow sharply and breakeven projected by the end of 2026. The company expects its adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) to grow by 14% quarter-on-quarter to $124m in the third quarter of 2025. This growth is attributed to higher on-demand gross merchandise value (GMV) and stable margins.
The equity research report from CGS International highlights the improved profitability of Grab’s digital financial services (DFS) segment, prompting an upgrade of the company’s target price to $7.00. This reflects the valuation for the financial year 2027 and the enhanced value of the DFS segment.
In addition to Grab Holdings, the report also covers other companies and sectors. Lindian Resources in Australia has seen a target price increase to $0.58 (AU$0.91), driven by progress in its projects in Malawi. Meanwhile, MTM Critical Metals Ltd has been noted for its memorandum of understanding with Glencore, which could address both feedstock and sales challenges.
The report further discusses the rise of the “guzi” economy in China’s consumer discretionary sector, driven by Gen Z’s emotional consumption, and the ongoing structural tailwinds in Singapore’s offshore and marine industry.
Overall, the CGS International equity research report provides insights into various sectors and companies, with Grab Holdings’ financial services segment standing out as a key turnaround story. The anticipated breakeven and EBITDA growth signal a positive outlook for the company in the coming years.
