Uber shares face downward pressure as Arete Research warns of slowing profitability and long-term disruption from Tesla's autonomous vehicle initiatives, despite a broader analyst consensus of a Strong Buy.
Analyst downgraded Uber to Neutral citing expected deceleration in profitability and intensifying competition from Tesla's autonomous Cybercab.
Arete Research analyst Oliver Lester downgraded Uber Technologies to Neutral, citing a projected 65% decline in quarterly EPS and intensifying competition from Tesla's autonomous Cybercab. Despite the downgrade and a price target cut to $74, the stock remains a Strong Buy among the broader Wall Street consensus.
The downgrade stems from concerns over decelerating profitability, rising operational costs, and the potential competitive threat posed by Tesla's autonomous Cybercab network.