03:07 PM EDT, 08/07/2024 (MT Newswires) -- Instacart (CART) reported modest Q2 beat and encouraging guidance, with an increase in its share price after the results reflecting low expectations, Wedbush said in a note Wednesday.

The company delivered "healthy" Q2 results with total gross transaction value growth of 9.7% from a year ago exceeding market expectations of 8.7% growth estimate, while adjusted EBITDA was also ahead of consensus, Wedbush said.

Referring to a spike in the shares following its results, Wedbush analysts, including analyst Scott Devitt, said that "reflects low expectations heading into results given recent market volatility and concerns around a weakening consumer."

The analysts said the company's Q3 guidance implies modest upside versus their prior model. They kept their neutral rating.

"We continue to view the risk/reward as balanced given the challenging competitive backdrop and lack of clear catalysts to sustainably re-accelerate the business over the longer-term," the analysts said.

Price: 32.48, Change: +1.05, Percent Change: +3.34