Needham Expresses Bullishness On US Ride-Share Industry; Uber Remains On Conviction List

Needham analyst Bernie Mcternan forecasted a 24% 3-year CAGR for U.S. ride-share bookings through 2025, down from the 45% CAGR in the three years heading into the pandemic.
Company data, industry reports, and a proprietary survey of 500+ U.S. consumers supported the forecast.
He had a more bullish view of the U.S. ride-share industry, causing him to increase the estimates for Lyft, Inc LYFT and conviction in Uber Technologies, Inc UBER reaching its 2024E bookings guidance.
Also Read: Uber Resumes Ridesharing In Some Cities, Makes It More Attractive
UBER remains his choice for Needham's Conviction List as he liked its balance of growth and profitability. He had a Buy on Uber with a price target of $50.
He remained Hold-rated on LYFT due to concerns over necessary investment levels for driver supply.
The survey indicated price sensitivity and low frequency, leading to a high churn risk.
He noted that the power users were modestly less price-sensitive than lower frequency users.
Price Action: UBER shares traded higher by 0.16% at $21.80 on the last check Wednesday.
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