In a major pair trade published by the company on Monday, Piper Sandler lowered DoorDash (NYSE:DASH) to Underweight from Neutral and upgraded Uber stock (NYSE:UBER) to Overweight from Neutral.
According to analyst Alexander Potter, vehicle prices are almost at all-time highs, and a swift return to the previous pricing looks doubtful. According to the Piper perspective, people who are short on cash will increasingly choose to hail transportation rather than attempt to replace outdated vehicles.
“Additionally, Overweight-rated LYFT and GETR should profit from this trend. We advise selling DoorDash as a hedge against long bets in these stocks. DASH benefits from the growing worker supply, but not from the rising demand for ride-hailing.”
The main point is that DoorDash (NYSE:DASH) will continue to experience revenue pressure from the recession, and unconventional revenue sources are still anticipated to be years away. Piper decreased its price target for DASH from $227 to $40.
Due to their higher opex costs, Lyft (NASDAQ:LYFT) and Getaround (NYSE:GETR) are thought to rank somewhat below Uber (NYSE:UBER). Uber (UBER) is known to be bigger, more successful, and anticipated to produce more income in a downturn.
DASH stock prices moved down in early trade on Monday, falling 0.77%. Uber (NYSE:UBER) increased by 4.20%.
Uber Stock
The world’s largest ride-sharing company, Uber (NYSE:UBER), is among the recently reviewed 7 growth stocks to buy. It can be considered too radical by others. Wall Street was once interested in the company’s idea, but implementation problems persisted. So it shouldn’t come as a huge surprise that UBER’s equity value decreased by almost 43% over the past year.
You won’t genuinely experience good feelings from the ride-sharing company financially either. In fact, Gurufocus.com currently classifies Uber as a potential value trap. Regarding technical analysis, I think it’s intriguing that the price of Uber stock seems to have reached a bottom around July of last year. Sentimentally, it might be ready for a counterintuitive rally upward.
This is so because external fundamentals support Uber’s business units. On the ride-sharing front, trends toward workplace normalization could result in an increase in the number of business trips. Additionally, the company’s food delivery service, Uber Eats, may be advantageous for recalled employees. Surprisingly, analysts adore UBER and give it a consensus strong buy rating. The hedge funds, who have been accumulating a position, concur. UBER should be taken into account when choosing growth stocks to buy.
Uber Stock And Lyft Surge After Court Stops New York City Ride-Share Fee Increase
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Author Jowi Kwasu 
