Arete Research Downgrades Uber Stock Amid Profitability Concerns
A senior analyst at Arete Research, Oliver Lester, downgraded Uber Technologies (UBER) to 'Neutral' and cut its price target to $74. The downgrade was driven by concerns over slowing profitability amid rising operational costs and increased driver incentives. Despite a projected 9.6% year-over-year revenue increase to $14.76 billion for the full year, earnings per share are expected to drop sharply in Q3 due to margin compression. Lester also highlighted growing competition from Tesla's upcoming Cybercab autonomous ride-hailing service as a potential threat to Uber’s pricing power and long-term valuation. However, other Wall Street analysts remain bullish on UBER stock, with Barchart reporting a 'Strong Buy' consensus rating and an average price target of over $103. Uber shares closed higher despite the downgrade but continue to trade below their major moving averages, signaling ongoing investor caution.
Topics: Arete Research Autonomous Vehicles Earnings Outlook Uber