Uber Holds the Edge on Wait Times Despite Lyft's Aggressive Pricing, Says Analyst
Portfolio Pulse from Anusuya Lahiri
DA Davidson analyst Tom White reiterated a Buy rating on Uber Technologies, Inc (NYSE:UBER) with a price target of $64. The analyst compared Uber and Lyft's trip prices and wait times over the past six weeks. Lyft's prices were generally lower than Uber's by ~3.5%, but Uber consistently had shorter wait times. Lyft's quoted wait times have averaged 37% longer than Uber's since late July. Uber shares traded higher by 2.75% at $48.54 on the last check Monday.
September 11, 2023 | 6:05 pm
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POSITIVE IMPACT
Analyst reiterates Buy rating on Uber with a price target of $64. Despite Lyft's lower prices, Uber consistently had shorter wait times. Uber shares traded higher by 2.75% at $48.54 on the last check Monday.
The positive rating from the analyst and the competitive advantage in wait times over Lyft could boost investor confidence in Uber, potentially driving the stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Lyft's prices were generally lower than Uber's by ~3.5%, but Uber consistently had shorter wait times. Lyft's quoted wait times have averaged 37% longer than Uber's since late July.
Despite Lyft's lower prices, its longer wait times compared to Uber could negatively impact its competitive position and potentially its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100