Uber assumed with a Buy at Jefferies

Jefferies analyst John Colantuoni assumed coverage of Uber with a Buy rating and $38 price target. Colantuoni estimates Uber’s core Rideshare/Restaurant Delivery businesses each operate in ~$1T addressable markets, which implies just ~5% penetration and a long runway for growth, and thinks Uber’s dominant scale and network effect support greater reinvestment into customer experience/adoption, which should spur frequency/stickiness and grow market share over time, the analyst tells investors in a research note.