Raymond James analyst Justin Patterson reiterated an Outperform rating on Uber (UBER) and Lyft (LYFT), telling investors in a research note that per his conversations, ride-sharing sentiment is improving "notably." He says he believes the shift to bullishness reflects 2019's divergence between stock performance, and that while 2019 was the "perfect storm" for negative catalysts, 2020 is the reverse. Additionally, he says Uber and Lyft have addressed investor concerns by enhancing disclosures, implementing expense discipline and expressing profitability timelines. He thinks valuations are compelling at current levels.

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.