Read Why RBC Capital Slashed Price Targets Of Uber, Lyft

RBC Capital analyst Brad Erickson slashed the price target on Uber Technologies Inc UBER to $50 from $65 (57% upside) but kept an Outperform.
Erickson cut the price target on Lyft Inc LYFT to $50 from $53 (37% upside) and kept an Outperform.
Erickson cited the findings from RBC's proprietary driver supply analysis that gave a relative advantage to Lyft while noting that the company's share gains found in the October study have likely decreased.
Also Read: Uber Adds Surcharge To Help Drivers Bear Rising Gas Prices, Lyft, GrubHub Follow Uber, Boost Gig Driver Pay
Ride-hailing demand returned strong with the reopening and likely spring and summer travel inflection.
However, the supply trailed demand as the rising fuel costs made the value proposition less compelling.
The driver supply has worsened for both players and could indicate rising driver incentive expense pressure and less margin upside potential.
Price Action: UBER shares traded lower by 4.45% at $31.88, LYFT lower by 5.62% at $36.45 on the last check Monday.

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