Melius starts Uber and Lyft with Holds amid AV uncertainty

Melius Research initiated coverage of both Uber Technologies (UBER) and Lyft (LYFT) with Hold ratings and price targets of $77 and $15, respectively. The new debate for rideshare “turns to the elephant in the room” – the impact of autonomous vehicles on the ecosystem, the analyst tells investors in a research note. The firm says that while growth acclerating from autonomous vehicles “is certainly possible,” with Tesla (TSLA) now seemingly set on entering the market with its own robotaxis, “a new overhang has arrived.” The prospect of a new entrant into the market “brings a cloud of uncertainty to an industry just starting to click, illustrating the uncertainty around autonomy,” contends Melius. Uber and Lyft have a secular growth story to tell, but the “problem is everyone agrees,” the firm adds.