- Needham analyst Bernie McTernan reiterated a Buy on Uber Technologies, Inc UBER with a price target of $52.
- In his 12th Mobility Tracker, wait times and pricing increased over the past month but held mainly onto the significant improvements that started in July.
- Lyft, Inc LYFT has shown some positive signals, taking back some lost share in wait times, although UBER still leads in his head-to-head comparison, he said.
- NYC has been the most robust performing city over the past six weeks, McTernan noted.
- The analyst observed that the demand indicators have seemingly stabilized over the past few months.
- McTernan will look for lower gas prices and their impact on supply and demand, with the national average below $4.
- Strategically, Uber will benefit from reopening the economy in Mobility.
- Both Uber and Lyft talked about the return of profitable growth and its positive impact on their respective consolidated margins.
- In Delivery, the analyst thinks Uber can grow its share of bookings by expanding into new verticals with a buy-over-build strategy that allows for quick penetration.
- McTernan foresees the company's Mobility business benefiting from its Uber Pass subscription.
- The analyst also thinks the company's subscriptions would benefit from a more aggressive pursuit of acquisitions.
- Price Action: UBER shares traded lower by 3.45% at $28.01 on the last check Monday.
- Photo via Wikimedia Commons
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