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.
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.
