- RBC Capital analyst Brad Erickson slashed the price target on Uber Technologies Inc (NYSE:UBER) to $50 from $65 (57% upside) but kept an Outperform.
- Erickson cut the price target on Lyft Inc (NASDAQ:LYFT) to $50 from $53 (37% upside) and kept an Outperform.
- Erickson cited the findings from RBC's proprietary driver supply analysis that gave a relative advantage to Lyft while noting that the company's share gains found in the October study have likely decreased.
- Also Read: Uber Adds Surcharge To Help Drivers Bear Rising Gas Prices, Lyft, GrubHub Follow Uber, Boost Gig Driver Pay
- Ride-hailing demand returned strong with the reopening and likely spring and summer travel inflection.
- However, the supply trailed demand as the rising fuel costs made the value proposition less compelling.
- The driver supply has worsened for both players and could indicate rising driver incentive expense pressure and less margin upside potential.
- Price Action: UBER shares traded lower by 4.45% at $31.88, LYFT lower by 5.62% at $36.45 on the last check Monday.
