Rosenblatt Starts Uber Inc. (UBER) at Buy

Rosenblatt analyst Scott Devitt initiates coverage on Uber Inc. (NYSE: UBER) with a Buy rating and a price target of $100.00.

The analyst comments: “Within our broader launch on the Online Travel & Mobility sector, we are initiating coverage on shares of UBER with a BUY rating and $100 PT. Shares have been pressured over the past year as headline risk associated with autonomous vehicles has weighed on sentiment. At the current price, we think the dislocation has created an attractive entry point to a high-quality, durably compounding platform, with the AV debate a longer-term overhang rather than a tangible near-term risk.

The AV disruption timeline is longer than the market initially feared, and Uber’s multi-partnership strategy is positioned to capture volume regardless of how the supply dynamic unfolds. AVs account for less than 0.5% of trips today, and Uber can likely keep taking share across mobility and delivery for an extended period before there is meaningful disruption to the business. AV penetration scenarios over the next several years still support a reasonable return on shares over our investment horizon, even under our longer-term structural view that AV operators will ultimately favor 1P distribution”

For an analyst ratings summary and ratings history on Uber Inc. click here. For more ratings news on Uber Inc. click here.

Shares of Uber Inc. closed at $75.65 yesterday.

You May Also Be Interested In

• Chardan Assumes Rocket Pharmaceuticals (RCKT) at Buy
• UBS Downgrades Shanghai Chicmax Cosmetic (2145:HK) to Neutral
• Boot Barn (BOOT) Reiterated at Overweight by JPMorgan as New Marketing Launched