It may be too early for investors to start checking out shares of Instacart , according to Needham.
Analyst Bernie McTernan initiated coverage of the grocery delivery company with a hold rating, citing concerns over rising competition and slowing penetration in a Tuesday note to clients.
The commentary from Needham follows Instacart's closely watched Nasdaq debut .
CART 1D mountain Share performance since IPO Instacart triumphed during Covid-19 pandemic shutdowns, which pushed more consumers toward online grocery delivery.
The trend boosted the company's compound annual growth rate nearly 130% between 2019 and 2022, with Instacart expected to post more than $1 billion in adjusted EBITDA in 2023, according to Needham.
Persons:
Needham, Bernie McTernan, Instacart's, Instacart, McTernan, — CNBC's Michael Bloom
Organizations:
Nasdaq, Walmart
Locations:
Instacart, Needham, Amazon