Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Instacart, following its recent IPO, stands as a significant player in the online grocery landscape with a balanced approach towards small and large basket segments.</li><li>The company holds a dominant market share, with over 60% in large baskets and 50% in small baskets.</li><li>This capability is critical in the highly competitive grocery delivery market, where new entrants primarily focus on small baskets.</li></ul>

Instacart, following its recent IPO, stands as a significant player in the online grocery landscape with a balanced approach towards small and large basket segments.The company holds a dominant market share, with over 60% in large baskets and 50% in small baskets.This capability is critical in the highly competitive grocery delivery market, where new entrants primarily focus on small baskets.

Maplebear Inc (Instacart): Initiation Of Coverage & Post IPO Analysis – Redefining Grocery Shopping After Its IPO! - Key Drivers

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Our base case valuation of Instacart is target price of $33.7 per share, which represents a 20% upside from the high end of the IPO price range ($28 per share).</li>
<li>We estimate the company's operating margin to improve from 2.4% in 2022 to 13.2% in 2023 and 14.6% in 2024.</li>
<li>Although overall sales growth rate from 2020 to 2024 is lower for Instacart as compared to Uber and DoorDash, Instacart is having stronger growth in operating margins than its peers. </li>
</ul>


Our base case valuation of Instacart is target price of $33.7 per share, which represents a 20% upside from the high end of the IPO price range ($28 per share).
We estimate the company's operating margin to improve from 2.4% in 2022 to 13.2% in 2023 and 14.6% in 2024.
Although overall sales growth rate from 2020 to 2024 is lower for Instacart as compared to Uber and DoorDash, Instacart is having stronger growth in operating margins than its peers. 


<ul>
<li>Instacart is targeting a valuation between US$8.6 billion to US$9.3 billion in its IPO. Instacart's valuation has declined nearly 77% from its peak levels US$39 billion a few years ago.</li>
<li>Established in 2012, Instacart is a leading players in North America of delivering online grocery goods to consumers' homes.</li>
<li>Instacart generated sales of US$2.6 billion (up 39.1% YoY), gross profit of US$1.8 billion (up 49.3% YoY), and operating profit of US$62 million (turned black YoY) in 2022.</li>
</ul>


Instacart is targeting a valuation between US$8.6 billion to US$9.3 billion in its IPO. Instacart's valuation has declined nearly 77% from its peak levels US$39 billion a few years ago.
Established in 2012, Instacart is a leading players in North America of delivering online grocery goods to consumers' homes.
Instacart generated sales of US$2.6 billion (up 39.1% YoY), gross profit of US$1.8 billion (up 49.3% YoY), and operating profit of US$62 million (turned black YoY) in 2022.


Private Markets, Angel and Secondary Investing, Sacra

Sacra

Private Markets, Angel and Secondary Investing

Bringing transparency to private markets so investors, founders, and employees can build on conviction. Sacra delivers deeply researched insights on the private companies shaping tomorrow's markets. By surfacing the data, context, and operator perspective that are missing from private markets today, we help secondary buyers and sellers price equity accurately and unlock liquidity for the people building these businesses.

Private Capital Markets

<ul><li>Kavin Stewart is partner at Tribe Capital and former VP of Product at Reddit.</li><li>Reddit monetizes with ads and its subscription product Premium.</li><li>For people who have passionate interests, Reddit's basically the number one place to go.</li></ul>

Kavin Stewart is partner at Tribe Capital and former VP of Product at Reddit.Reddit monetizes with ads and its subscription product Premium.For people who have passionate interests, Reddit's basically the number one place to go.

Kavin Stewart, Partner At Tribe Capital, On Reddit's 10x Opportunity

<ul><li>Instacart hit $2.5B in revenue and 29% market share of online grocery capitalizing on the customers and infrastructure of existing grocery stores—for their next act, they’ll need to retool as a high margin software business helping those stores make up their margins.</li><li>COVID lockdowns turned online grocery delivery from a luxury to a must-have, pulling forward demand by a decade—online grocery delivery and pickup went from 3% of the $1.5 trillion grocery market to 10% in the span of 2 years.</li><li>As of 2023, Instacart has pulled itself out of the valley of negative unit economics, outlived its competition and become the leading 3rd party grocery delivery service—and now it’s leveraging its ownership of the interface to drive higher-margin (80%) CPG partnerships (~$550M revenue and 30% of top line in 2021) that give brands prime placement on its digital shelves in the form of feed and search results.</li></ul>

Instacart hit $2.5B in revenue and 29% market share of online grocery capitalizing on the customers and infrastructure of existing grocery stores—for their next act, they’ll need to retool as a high margin software business helping those stores make up their margins.COVID lockdowns turned online grocery delivery from a luxury to a must-have, pulling forward demand by a decade—online grocery delivery and pickup went from 3% of the $1.5 trillion grocery market to 10% in the span of 2 years.As of 2023, Instacart has pulled itself out of the valley of negative unit economics, outlived its competition and become the leading 3rd party grocery delivery service—and now it’s leveraging its ownership of the interface to drive higher-margin (80%) CPG partnerships (~$550M revenue and 30% of top line in 2021) that give brands prime placement on its digital shelves in the form of feed and search results.

United States

Instacart Inc. provides online grocery shopping services. The Company allows customers to select groceries through an online application platform from various retailers and have them delivered by personal shoppers. Instacart serves customers in the United States.

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Instacart (CART US)

Maplebear Inc (Instacart): Initiation Of Coverage & Post IPO Analysis – Redefining Grocery Shopping After Its IPO! - Key Drivers

Instacart, following its recent IPO, stands as a significant player in the online grocery landscape with a balanced approach towards small and...

Baptista Research

Instacart IPO Valuation Analysis

Our base case valuation of Instacart is target price of $33.7 per share, which represents a 20% upside from the high end of the IPO price range...

Douglas Kim

Instacart IPO Preview

Instacart is targeting a valuation between US$8.6 billion to US$9.3 billion in its IPO. Instacart's valuation has declined nearly 77% from its peak...

Douglas Kim

Kavin Stewart, Partner At Tribe Capital, On Reddit's 10x Opportunity

Sacra interview with Kavin Stewart, partner at Tribe Capital and former VP of Product at Reddit.

Sacra

Instacart Vs Amazon Vs Uber

Instacart hit $2.5B in revenue and 29% market share of online grocery capitalizing on the customers and infrastructure of existing grocery...

Sacra

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