UBER - Tesla Threat Reduced For Uber And Lyft Stocks Also Benefit from Higher Prices and Shorter Wait Times: Analyst | Benzinga
Needham analyst Bernie McTernan reiterated Uber Technologies Inc (NYSE:UBER) with a Buy and a $90 price target.
McTernan observed strong second-quarter pricing trends, pushing the analyst to increase his bookings estimates for Uber and Lyft towards the high end of guidance. Wait times were mixed, with Uber’s rising and Lyft’s falling, narrowing Uber’s advantage, McTernan noted.
From an investment perspective, McTernan preferred Uber as he noted it as a stronger, profitable growth story. However, Lyft’s value proposition to consumers is improving, with lower pricing and wait times and a valuation that has drifted back towards trough levels, the analyst said. For both, competition fears from Tesla Inc (NASDAQ:TSLA) are slightly lowered, given the robotaxi event’s pushout, McTernan noted.
For Uber, pricing in the second quarter was the highest McTernan observed in his sample. Additionally, on a quarter-on-quarter basis, average pricing ...