Analyst Daniel Ives from Wedbush has chosen Uber (NYSE:UBER) over Lyft (NASDAQ:LYFT) as the more promising investment in the mobility sector for 2024. During an interview with Yahoo Finance, Ives expressed optimism about Uber’s prospects, anticipating that 2024 will be a significant year for the company.
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The analyst’s bullish outlook stems from Uber’s ability to generate strong cash flows and sustainable profitability. Further, Ives finds Uber’s valuation compelling and acknowledges the company’s “disruptive tech” as a key factor contributing to his bullish stance. Wedbush reiterated a Buy rating on Uber stock last month and termed it a top idea for 2024.
In contrast, Ives characterized Lyft as a “disaster.” The analyst emphasized that Lyft is losing market share and must implement additional cost-cutting measures. Moreover, he expressed skepticism about mergers and acquisitions (M&A) as a viable option for the company. However, he indicated that his stance could shift to a more positive outlook if the company’s overall business performance improves.
Which Stock is Better, Uber or Lyft?
Uber stock has gained over 126% in one year. In comparison, Lyft stock has only appreciated by about 14%. Further, based on Wall Street analysts’ consensus rating, Uber appears to be a better stock and sports a Strong Buy consensus rating.
While Uber stock has risen significantly, analysts’ average price target of $65.46 implies an upside potential of 13.3% from current levels. As for Lyft, analysts’ consensus price target is in line with its current market price.
