Updates shares, adds analyst comment in paragraph 10

By Neil J Kanatt

May 6 (Reuters) - Instacart CART.O on Wednesday forecast second-quarter gross transaction value above Wall Street expectations and said shoppers were increasingly seeking value, boosting demand for its online grocery delivery services.

Disrupted supply chains and inflation due to the U.S.-Iran conflict are making everyday products dearer for consumers, who were already battling higher costs of living, pushing them to buy cheaper products.

Instacart, which focuses on affordability, is "seeing strength with the consumer" and has not seen anything "materially change" in spending patterns so far, CEO Chris Rogers told Reuters.

The company said club retailers, which offer its members heavy discounts, continued to outperform on its platform, while retailers offering better value were growing faster.

For the current quarter, Instacart expects GTV - a key metric that reflects the value of products sold based on prices shown on its platform - between $10.10 billion and $10.25 billion, above analysts' estimate of $10.07 billion, according to data compiled by LSEG.

It forecast adjusted core profit between $290 million and $300 million, broadly in line with the average analyst estimate of $298.8 million.

Instacart's first-quarter GTV rose 13% to $10.29 billion, beating estimates of $10.2 billion, while adjusted core profit climbed 23% to $300 million, above estimates of $287.4 million.

The company, however, reported a 10% rise in orders compared with a 16% growth a year earlier, sending its shares down 10%.

Rogers said orders in the year-ago quarter had got a boost from its $10 minimum basket rollout.

"This feels like a classic overcorrection," eMarketer analyst Suzy Davidkhanian said about the share reaction, adding the company's "core story" remained intact despite intense competition.

Instacart also disclosed that it raised its annual share repurchase target by $1 billion to $3.5 billion last week.