Uber Inc. (UBER) PT Lowered to $40 at Mizuho Securities

Mizuho Securities analyst James Lee lowered the price target on Uber Inc. (NYSE: UBER) to $40.00 (from $50.00) while maintaining a Buy rating.

The analyst commented, "Uber hosted an analyst call to provide a business update. Key points: (1) Rides in major US cities are declining 65% and Europe is not far behind. However, HK’s rapid recovery provides an encouraging roadmap. (2) Variable cost structure provides flexibility to offset revenue pressure. (3) Stress test of liquidity shows Uber has $6bn in available capital even if Rides business drops by 80%. As a result, we are pushing back the EBITDA break-even target by about a year to FY21 and lower our FY23 EBITDA estimate by 15% to $4.2bn. Maintain Buy rating but lower PT from $50 to $40, based on SOTP analysis; implies 15x FY23 EBITDA."

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