DA Davidson analyst Tom White keeps a Buy rating and $82 price target on Uber (UBER) following a Financial Times report that the company is exploring a bid for Expedia (EXPE). The firm notes that it the consideration is understandable as Uber is interested in expanding into travel bookings and the companies’ similar high-level business models makes for somewhat easy integration, but the acquisition “does not make sense right now”, the analyst tells investors in a research note. The broader opportunity to expand into travel is “not perishable” and will always be there should Uber want to pursue it more aggressively, but the company does not need this distraction right now as it is in the early innings of some very large, attractive, and competitive emerging growth categories like online grocery and online local commerce delivery, the firm states, also noting that Uber is still trying to navigate the very dynamic and potentially risky rise of autonomous rideshare.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on UBER:
- Uber M&A headline reminder of favorable market position, says Raymond James
- Uber said to consider Expedia bid, CSX posts Q3 miss: Morning Buzz
- Uber-Expedia combination ‘could make sense at a high level,’ at Mizuho
- Uber downgraded, Zoom Video upgraded: Wall Street’s top analyst calls
- Unusually active option classes on open October 17th