- Needham analyst Bernie Mcternan forecasted a 24% 3-year CAGR for U.S. ride-share bookings through 2025, down from the 45% CAGR in the three years heading into the pandemic.
- Company data, industry reports, and a proprietary survey of 500+ U.S. consumers supported the forecast.
- He had a more bullish view of the U.S. ride-share industry, causing him to increase the estimates for Lyft, Inc (NASDAQ:LYFT) and conviction in Uber Technologies, Inc (NYSE:UBER) reaching its 2024E bookings guidance.
- Also Read: Uber Resumes Ridesharing In Some Cities, Makes It More Attractive
- UBER remains his choice for Needham's Conviction List as he liked its balance of growth and profitability. He had a Buy on Uber with a price target of $50.
- He remained Hold-rated on LYFT due to concerns over necessary investment levels for driver supply.
- The survey indicated price sensitivity and low frequency, leading to a high churn risk.
- He noted that the power users were modestly less price-sensitive than lower frequency users.
- Price Action: UBER shares traded higher by 0.16% at $21.80 on the last check Wednesday.
- Photo via Wikimedia Commons
