Uber price target lowered to $53 from $57 at Morgan Stanley
Morgan Stanley analyst Brian Nowak said Uber's new disclosure of ridesharing vs. Eats contributions gives more clarity around Uber's path to profitability and he is optimistic this disclosure will continue going forward. Based on his new bottom-up segment-level forecast for Rides and Eats, Nowak raised his FY19 adjusted EBITDA forecast by 5% and increased his FY20 adjusted EBITDA view by 15%, putting him ahead of Street expectations for both, he tells investors. Despite being bullish about Uber's ability to show investors improving profitability, Nowak lowered his Eats FY19 and FY20 bookings estimates by 3% and 7%, respectively, and also adjusted his primary valuation methodology, leading him to lower his price target for Uber shares to $53 from $57. Nowak keeps an Overweight rating on the stock.