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Lyft, Uber Jump Midday on HSBC Upgrade

Investing.com - Ride-hailing companies Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) surged in midday trading Monday after HSBC upgraded the companies to buy from hold, touting a 30% upside in both firms.

“We think regulatory concerns are priced in, whilst we continue to see a lot of optionality around product improvements for both Uber and Lyft,” HSBC analyst Masha Kahn wrote in a note.

Despite the upgrade, HSBC lowered its price target for the companies due to the stocks of both companies falling over the last three months on regulatory concerns and slowing growth.

HSBC lowered its price target on Uber to $44 from $49 a share, while Lyft was lowered to $62 from $67 a share.

Shares of Lyft jumped 5% in midday trade, while Uber gained 4%.

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