Broker Name: CGS International
Date of Report: October 3, 2025

Excerpt from CGS International report.

Report Summary

• CGS International upgrades Grab Holdings to “Add” with a higher target price of US\$7.00, reflecting improved profitability and a strong turnaround in its Financial Services segment.
• Grab’s Financial Services segment is expected to achieve operating breakeven by end-2026, with losses narrowing sharply due to improved risk models and reduced credit loss allowances.
• The company forecasts robust growth across all segments, with adjusted group EBITDA rising 14% quarter-on-quarter to US\$124 million in 3Q25, driven by strong on-demand GMV and stable margins.
• Management expects continued loan book growth, product innovation, and expanding digital banking services in Singapore and Malaysia, with the loan book projected to surpass US\$1 billion in FY25.
• All three segments (Deliveries, Mobility, Financial Services) are expected to achieve positive adjusted EBITDA by FY27, positioning Grab for meaningful medium-term earnings growth.
• Key re-rating catalysts include stringent cost optimization, higher ad business penetration, and earlier profitability in Financial Services; downside risks include higher-than-expected credit losses and regional corporate costs.
• Grab is highlighted for its ESG commitment, receiving a C+ LSEG ESG score and maintaining an MSCI ESG AA rating, with ongoing initiatives in sustainability, diversity, and safety.

Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgsi.com