DA Davidson analyst Tom White keeps his Neutral rating and $35 price target on Uber after the company, along with Postmates, filed a federal lawsuit requesting a preliminary injunction for California Assembly Bill 5, or AB5. The lawsuit claims that the bill violates the constitutional rights and discriminates against both gig economy workers and the tech platforms they use, but its real intent is for "buying time" and "swaying public opinion" during the election year, enabling "gig economy" companies to operate normally while enactment is tied up, the analyst writes in his research note. White further contends that a "negotiated middle ground" between CA lawmakers and gig economy companies is the most likely outcome, and that negotiations may continue "for a while".

Jefferies raised the firm's price target on Uber to $103 from $100 and keeps a Buy rating on the shares. Results should display continued focus on using non-core investments to drive elevated GBV growth, though avoiding a material drop in incremental margins is key to keep investors positive, the analyst tells investors in a preview note for the U.S. Internet group.