UBER - Uber gets bullish start as Nomura sees scale driving profitability

Seeing user penetration in the early stages and opportunities to build scale and become profitable, Nomura initiates coverage on Uber (UBER) with a Buy rating and Lyft (LYFT) at Neutral.Analyst Anindya Das calls "Uber's scale in a fast-growing market" a competitive advantage and sees the rapid revenue growth paving the path to Q4 adjusted EBITDA profitability, which would serve as a positive catalyst for the stock.The analyst likes Lyft's second-place status in the U.S.rideshare market and expects rapid revenue growth in the medium term. But Lyft has a more limited ability to cross-sell services through its platform, which could push sustainable adjusted EBITDA profitability out to 2023.Price targets are set at $80 for Uber and $61 for Lyft.Uber and Lyft are both down slightly pre-market to $57.70 and $61.63, respectively.Related: Earlier this month, Uber reported that its Mobility gross bookings posted the best month since the pandemic started in March 2020.

For further details see:

Uber gets bullish start as Nomura sees scale driving profitability