Jefferies has increased its price target on Instacart (NASDAQ:CART) to 50 from 48 while maintaining a Hold rating. This increase reflects analysts’ belief in the company’s potential for growth in gross transaction value.

Recent cohort analyses show that Instacart is likely on track to meet GTV estimates, especially with incremental contributions from Uber Eats. However, challenges with profitability remain, stemming from investments in marketing and affordability initiatives, alongside uncertainties in advertising revenue growth.

Jefferies will continue to monitor Instacart’s monetization strategy before advising to take a more aggressive stance on the stock.