RBC Capital analysis yields favorable results for Uber over Lyft

RBC Capital reiterated an Outperform rating and $46 per share price target on Uber (NYSE: UBER) in a note Tuesday, stating that driver supply analysis indicates supply outperformance.

"Our latest qtrly U.S. ride-hailing driver supply analysis yielded continued favorable results for UBER relative to LYFT, in our view," wrote RBC Capital analyst Brad Erickson.

The analyst revealed that their analysis showed Uber's pick-up times got better while rival Lyft (NASDAQ: LYFT) got worse, while Uber's higher pricing gap widened.

This indicates a growing driver hourly wage advantage, according to Erickson, who added that Lyft continues underperforming in LA, which they believe is a "useful proxy for the presumptive west coast rebound."

"We continue to favor UBER's apparent structural advantage, with multiple levers to pull on take rate/EBITDA leverage, which should see Street ests move higher & bears having to increasingly contemplate index inclusion into next year," he concluded.

By Sam Boughedda

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