Wedbush analysts suggested “incremental caution” across the mobility, delivery and grocery sectors, heading into the fourth-quarter earnings season.
While the analysts believe current estimates remain achievable, they warned that upside potential is limited due to a softening demand environment and persistent macro uncertainty.
Wedbush analysts were lukewarm, at best, on Uber Technologies, Inc. (NYSE:UBER), maintaining a Neutral rating with a $78 price target.
Investor sentiment has cooled since the third quarter, driven by a lack of near-term catalysts and rising anxiety over AV risk. While Uber’s delivery segment remains encouraging, the report suggests downside risk to mobility gross bookings, resulting in a more balanced and cautious risk-reward profile.
The firm's outlook for Lyft, Inc. (NASDAQ:LYFT) and Maplebear, Inc.'s Instacart (NASDAQ:CART) was bearish with Underperform ratings on both stocks.
Wedbush noted that Lyft has struggled with weak app engagement and monthly active user (MAU) growth decelerating significantly compared to the third quarter. Lacking organic growth catalysts, Wedbush maintained a $16 price target.
The analysts maintained a $36 price target on Instacart as it faces fierce competition from omnichannel retailers like Amazon and Walmart.
Wedbush expects order growth to moderate and warned that softer pricing dynamics could erode the company’s market share and margins over time.
DoorDash, Inc. (NASDAQ:DASH) stands out as the firm's top pick with an Outperform rating and a $270 price target. Wedbush expects DoorDash to see adjusted EBITDA margin expansion through 2026, supported by its growing advertising segment and increased efficiencies in logistics.
The firm views DoorDash's current valuation as attractive at around $210 per share.
Q4 Earnings Dates:
- Uber will report before the opening bell on Wednesday, Feb. 4.
- Lyft is set to report after the closing bell on Feb. 10.
- Doordash will report after the market closes on Feb. 18.
- Maplebear is set to report after the closing bell on Feb 12.
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