Broker: DBS Group Research
Date of Report: 04 May 2026
Excerpt from DBS Group Research report.
Report Summary
- Stock Focus: Grab Holdings Ltd (GRAB US)
- Action: BUY
- 12-mth Target Price: USD 5.93 (vs. closing price USD 3.67 as of 01/05/2026)
- Key Idea: The newly enforced lower take-rate regulation in Indonesia may act as a precursor for an easier merger approval process for GRAB and GOTO by addressing government concerns on driver welfare. With ride-hailing price floors and ceilings already in place, regulatory risks post-merger are reduced.
- Merger Structure: Depressed valuations for both GRAB and GOTO suggest that a HoldCo/share-swap structure is the most viable merger route, balancing governance and valuation concerns. This structure avoids a perceived foreign takeover and allows both parties to benefit from synergies.
- Synergy Potential: Estimated 10% adjusted EBITDA synergy is plausible, exceeding the 6–7% typically seen in Indonesian telecom consolidations. Main drivers include migration to GRAB’s superior tech platform, cost rationalisation, and integration of GOTO’s fintech arm.
- Implications: Lower take-rate could cut FY26F group adj EBITDA by 14% for GRAB and 26% for GOTO, but medium-term benefits are expected from consolidation and exit of smaller players.
above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS website : https://www.dbs.com/
