CNBC's Jim Cramer on Monday got behind Southeast Asia's ride-hailing giant Grab, though he recommended investors wait for lower price levels as Wall Street's appetite for SPAC deals subsides.
“I don't love the price right now, but if you wait for some weakness, and there probably will be, you've got my permission to do some buying,” the “Mad Money” host said.
Cramer said the stock would be more attractive under $11.50, about 20% lower.
“The thing about Grab… it's a great company, but it's also totally out of style with the Wall Street fashion show,” he added. “It's a rapidly growing digital play at a time when money managers want smokestack stocks.”
Smokestack refers to companies in more cyclical sectors of the market like energy and industrials.
Grab will list on the Nasdaq with the ticker GRAB when the deal closes with Altimeter, a special purpose acquisition company. The stock, currently under the symbol AGC, last traded at $14.01 on Monday, 4.4% higher than Friday.
Altimeter Growth is run by venture capitalist Brad Gerstner, who also got behind Snowflake and Roblox. Cramer highlighted that the company agreed to a three-year lockup on its shares.
Grab reported $1.6 billion of adjusted net revenues in 2020, topping its performance before the pandemic. The company projects annualized growth of 42% through 2023, according to a filing.
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