Uber, Lyft Can Hitch A Ride Higher If Q4 Earnings Beat Wall Street Estimates
Portfolio Pulse from Neil Dennis
Uber Technologies Inc (UBER) and Lyft Inc (LYFT) are set to report their Q4 earnings, with analysts at RBC Capital Markets optimistic about both beating market estimates. Uber is expected to report earnings of $0.15 a share, a 48% decrease from last year, but with a 13.2% increase in revenue to $9.75 billion. Lyft is anticipated to report earnings of $0.08 a share, a 111% increase from the previous year, with revenues expected at $1.22 billion, up 3.6%. RBC maintains a Sector Perform rating on Lyft with a $15 price target and an Outperform rating on Uber with a $65 price target, though Uber's current share price of $69.69 suggests it may be overpriced. The sector is viewed as healthy, with demand strong and competition rational.
February 05, 2024 | 10:58 pm
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POSITIVE IMPACT
Lyft is anticipated to report significant earnings growth and a modest increase in revenue for Q4. RBC Capital Markets has a Sector Perform rating on Lyft with a $15 price target.
Lyft's expected earnings growth and revenue increase signal a positive outlook for the company, potentially attracting investor interest. The Sector Perform rating and price target by RBC suggest a cautious optimism, indicating that if Lyft meets or exceeds expectations, there could be a positive short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Uber is expected to report a decrease in earnings but an increase in revenue for Q4. RBC Capital Markets maintains an Outperform rating with a $65 price target, though current share price suggests it may be overvalued.
While Uber's expected decrease in earnings might concern some investors, the anticipated increase in revenue and the sector's overall health could mitigate negative impacts. However, the current share price exceeding RBC's target suggests market expectations may already reflect optimism, limiting short-term upside.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90