Rising Wait Times And Higher Pricing For Uber? It Is Because Mobility Demand Has Hit Peak Levels, Analyst Says

Needham analyst Bernie McTernan reiterated a Buy on Uber Technologies, Inc UBER with a $52 price target.
In his 14th Mobility Tracker, wait times and pricing continued to rise, both back up towards peak levels, which he thinks is driven by a continued rise in demand, specifically the post-Labor Day return to work, and a lagged reaction by supply.
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He believes this environment supports Uber and Lyft, Inc LYFT (reiterated Hold) estimates and feels good about raising his 3Q bookings estimates in his last tracker two weeks ago.
However, he reduced his LYFT estimates for 4Q22, assuming a more normal seasonal uplift, which is already contemplated in his Uber forecast.
Strategically, he believes Uber will benefit from reopening the economy in Mobility.
In Delivery, he thinks Uber can grow its share of bookings by expanding into new verticals with a buy-over-build strategy that allows for quick penetration. He foresees the company's Mobility business benefiting from its Uber Pass subscription.
He also thinks the company's subscriptions would benefit from a more aggressive pursuit of acquisitions.
Last month, McTernan highlighted Uber's lead in the ride-hailing business on pandemic recovery.
Price Action: UBER shares traded lower by 5.31% at $28.85 on the last check Thursday.