Shares of both Lyft (LYFT) - Get Report and Uber (UBER) - Get Report got a bit of a bump on Thursday after an analyst at investment bank Evercore initiated coverage on both ride-hailing companies with an outperform rating, and 12-month price targets with upside to come.
Evercore analyst Benjamin Black initiated coverage with an outperform rating and a $60 price target for Uber, some 42% higher than where the stock currently trades. He also initiated coverage for rival company Lyft, also with an outperform and a $74 price target, 27% higher than where it sits currently.
Shares of Lyft gained 0.92% at $58.95 in premarket trading on Thursday, while shares of Uber were up 0.9% at $42.55.
"We see powerful near-term catalysts for a re-rating of both stocks on the back of a quietly improving pricing environment and incentive maturation, and we expect both to show profitability sooner than consensus is modeling," Black said in a note to clients.
Both companies have experienced the highs and lows of opening their books and operations to scrutiny in 2019 after going public earlier this year.
Lyft was first out of the gate, pricing its initial public offering at $72 a share; Uber followed less than a month later with an IPO price of $45 a share.