Stifel analyst Scott Devitt initiated coverage of Uber Technologies (UBER) with a Hold rating and $50 price target. The stock closed Monday down $2.11 to $44.27.
The company is addressing "significant" transportation and food delivery market opportunities, Devitt tells investors in a research note.
However, Uber's recent growth in core ridesharing bookings has slowed to a mid-20% rate as Lyft (LYFT) has gained share in the key U.S. market, Devitt tells investors in a research note.
Further, take rates have contracted across both the ridesharing and Eats businesses, adds the analyst. He likes Uber's growth opportunity, scale and market-leadership in most regions, but feels that "numerous competitors at home and abroad," slower adjusted net revenue growth, and a "significantly long road to profitability" warrants a Hold rating.
Devitt this morning also boosted his price target for Buy-rated Lyft to $76 from $70.
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