Guggenheim starts bullish on delivery and ride-hailing stock

Investing.com -- Guggenheim began coverage of the delivery and ride-hailing sector with bullish views on Uber, DoorDash and Lyft, while taking a more cautious stance on Instacart.

The brokerage initiated Uber Technologies with a Buy rating and a $140 price target, calling it its top pick.

Analysts said Uber’s scale in ride-hailing, delivery and logistics positions it to benefit most from autonomous vehicle adoption and growth in grocery, subscriptions and advertising.

DoorDash was rated Buy with a $330 price target, Guggenheim’s second-favorite stock in the sector. The firm expects DoorDash to extend its lead in food delivery while turning grocery and retail investments into a profit driver over time.

The recent acquisition of Deliveroo was seen as an underappreciated boost to international expansion.

Lyft also started at Buy with a $22 target, with Guggenheim citing new partnerships in autonomous mobility and improving growth under new management.

Analysts said the company’s smaller scale leaves it less insulated than Uber, but multiple players should benefit as autonomous vehicles become a bigger part of the U.S. rideshare market.

By contrast, Instacart’s parent Maplebear was rated Neutral with a $40 target. Guggenheim noted the company’s pioneering role in online grocery but questioned whether growth can keep pace with rivals given rising competition from Amazon, DoorDash and Uber.

The firm pointed to advertising and Instacart+ subscriptions as bright spots but said execution risk from a new management team warrants caution.

Uber was named Guggenheim’s top sector pick, followed by DoorDash and Lyft, with Instacart on the sidelines.

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