Morgan Stanley analyst Brian Nowak raised his Uber Rides bookings estimate by 2% and he now forecasts 18% year-over-year growth, which he notes is 3% ahead of the Street consensus. He cites the strength of U.S. private rides, the lapping of pooling headwinds, an assumed 3% year-over-year increase in U.S. pricing and the integration of Careem for his estimate hike. Rides "has evolved into a two-player game of unequals sooner than expected," contends Nowak, who keeps an Overweight rating on Uber (UBER) shares and Equal Weight rating on Lyft (LYFT). Given his increased estimates for the ridesharing business, which makes up about 65% of his estimate of Uber's total enterprise value, Nowak raised his price target to $58 from $55 for Uber shares.

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.