The past three years have been a mess for ride-hailing platforms like Uber Technologies and Lyft Inc. The pandemic shut down demand for rides, while delivery boomed. Then, when big cities and the broader economy reopened, there weren’t enough drivers to meet riders’ needs, and prices spiked.
But now, BTIG analyst Jake Fuller says, the industry is settling into something resembling a new normal. And he said Uber UBER could still book decent gains in that environment. Fuller kept his buy rating on Uber and raised his price target on the stock to $55 from $50. Shares of Uber rose 2.5% on Wednesday.
He continued: “As a higher cost of capital has put greater constraints on smaller competitors, [Uber] has seen its market share improve alongside its economics.”