Citi sees minimal impact to Uber from Minneapolis wage vote

Citi reiterates a Buy rating on Uber Technologies (UBER) with a $91 price target after the Minneapolis City Council overrode the mayor’s veto and voted to increase the minimum wage for rideshare drivers in the city. As a result, Uber and Lyft (LYFT) announced they would suspend rideshare activities on May 1, though delivery is not impacted, the analyst tells investors in a research note. The firm says that while there is risk that other cities may follow suit, it does not believe this is the beginning of greater regulatory challenges for ridesharing. Citi sees a minimal impact to Uber, saying Minneapolis is a smaller market which should minimize the impact to bookings as demand for newer products ramp. Uber remains one of the firm’s top picks.