Shares of Instacart dipped below the key $30 level for a third straight day, but they still have to fall a lot further to turn one analyst bullish. In a note titled “The Cart is Full,” BTIG’s Jake Fuller said he started coverage of the grocery-delivery app, officially known as Maplebear Inc.
CART,
-1.88%,
with a neutral rating. He did not set a stock-price target. BTIG was not one of the 20 underwriters of the IPO.
The stock fell as much as 2.3% to an intraday low of $29.95, or 0.2% below the $30 initial public offering price, before bouncing slightly to trade a penny above the IPO price in afternoon trading. After debuting at $42 on Sept. 19, the stock closed its first day at $33.70. It hit an intraday low of $29.96 on Wednesday before closing at $30.10, and it traded as low as $29.90 on Thursday before closing at $30.65. Read: Instacart IPO: 5 things to know about the app that’s looking to ride a ‘massive digital transformation’ in grocery shopping. Fuller is meh on the stock because he believes that “valuation is fair relative to modest growth prospects and challenging competitive dynamics.” He noted that both Uber Technologies Inc.
UBER,
-1.03%
and DoorDash Inc.
DASH,
+0.75%
have moved into the grocery-delivery business. “There are positives here with a strong market position, low ca …
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