UBER - Uber Stock Is Upgraded and Doordash Is Downgraded in a Piper Pair Trade Linked to the Expectation of a Recession
In a major pair trade published by the company on Monday, Piper Sandler lowered DoorDash ( NYSE:DASH ) to Underweight from Neutral and upgraded Uber stock ( NYSE:UBER ) to Overweight from Neutral.
According to analyst Alexander Potter, vehicle prices are almost at all-time highs, and a swift return to the previous pricing looks doubtful. According to the Piper perspective, people who are short on cash will increasingly choose to hail transportation rather than attempt to replace outdated vehicles.
“Additionally, Overweight-rated LYFT and GETR should profit from this trend. We advise selling DoorDash as a hedge against long bets in these stocks. DASH benefits from the growing worker supply, but not from the rising demand for ride-hailing.”
The main point is that DoorDash ( NYSE:DASH ) will continue to experience revenue pressure from the recession, and unconventional revenue sources are still anticipated to be years away. Piper decreased its price target for DASH from $227 to $40.
Due to their higher opex costs, Lyft ( NASDAQ:LYFT ) and Getaround (NYSE:GETR) are thought to rank somewhat below Uber ( NYSE:UBER ). Uber (UBER) is known to be bigger, more successful, and anticipated to produce more income in a downturn.
DASH stock prices moved down in early trade on Monday, falling 0.77%. Uber ( NYSE:UBER ) increased by 4.20%.
Uber Stock
The world’s largest ride-sharing company, Uber ( NYSE:UBER ), is among the recently reviewed 7 growth ...
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